ICICI Bank Q4FY21- India’s Two Largest Private Sector Banks Driving Growth in 2 Different Directions

ICICI Bank: Go Corporate-Heavy in a Corporate Slump, Retail-Heavy in a Pandemic

India Financials

Saumya Agarwal

Equity Bottom-Up

<p>ICICI Bank reported its Q2FY21 results today. In what appears to be a clear strategy to de-risk its advances portfolio, the Corporate and International loans continued to shrink q-o-q, even as Retail and SME loans registered a healthy growth. ICICI Bank has also built a massive Covid-related provision cover ( over and above the specific provision cover ) which augurs well for the Balance sheet. However, incremental NPA’s have more than doubled during Q2 FY21and is a cause of concern.</p>

ICICI Bank reported its Q2FY21 results today. In what appears to be a clear strategy to de-risk its advances portfolio, the Corporate and International loans continued to shrink q-o-q, even as Retail and SME loans registered a healthy growth. ICICI Bank has also built a massive Covid-related provision cover ( over and above the specific provision cover ) which augurs well for the Balance sheet. However, incremental NPA’s have more than doubled during Q2 FY21and is a cause of concern.

ICICI Bank Q2FY21:De-Risking and a Giant Provision Cover Augur Well but Pace of NPA Accruals a Worry

ICICI Bank Ltd

ICICI Bank Q2FY21:De-Risking and a Giant Provision Cover Augur Well but Pace of NPA Accruals a Worry