ICICI Bank: NPL Cleanup to Spillover into FY19

Senior investment analyst

Pallavi Deshpande

Equity Bottom-Up

<h2>Results</h2><p>ICICI Bank's 2Q18 net profit was 19% below consensus expectations due to a decline in treasury income (excluding the stake sale in a subsidiary). Core operating performance was in line with expectations with net interest income growth of 8.7% YoY and NIM at 3.3% (flat QoQ, +2 bps YoY) and benign operating cost growth of 4.6% YoY. Loan growth was muted at 6% YoY as it continues to trim its international book. Slippages declined QoQ, with retail slippages surprising positively with a…</p>

ResultsICICI Bank's 2Q18 net profit was 19% below consensus expectations due to a decline in treasury income (excluding the stake sale in a subsidiary). Core operating performance was in line with expectations with net interest income growth of 8.7% YoY and NIM at 3.3% (flat QoQ, +2 bps YoY) and benign operating cost growth of 4.6% YoY. Loan growth was muted at 6% YoY as it continues to trim its international book. Slippages declined QoQ, with retail slippages surprising positively with a…

ICICI Bank 2Q18: Rising Risk of NPL Divergence with RBI

ICICI Bank Ltd

ICICI Bank 2Q18: Rising Risk of NPL Divergence with RBI