 "ICICI Bank")
ICICI Bank dipped 4% to Rs 251, extending its Friday’s 3% fall on the BSE, after the bank’s gross non-performing assets (NPA) as a percentage of total advances jumped to 5.87% in the June 2016 quarter from 5.82% in the March quarter. In the year-ago period, it was 3.68%.
The net NPAs of the bank also increased to 3.35% in reported quarter comparison to 2.98% in previous quarter and 1.58% in the year-ago quarter.
The private sector lender, reported a 25% year-on-year (YoY) fall in its net profit at Rs 2,232 crore in the June quarter, compared with Rs 2,976 crore in the same period a year ago. Net interest income (NII), the difference between interest earned and interest expended, remained flat at Rs 5,159 crore, compared with Rs 5,115 crore.
“Operationally the bank reported flattish trend in NII while strong other income aided by treasury gains and repatriation gains helped deliver a beat on total revenues,” analysts at Antique Stock Broking said in a result review note.
The brokerage firm retains ‘Hold’ rating on the stock as it believe that uncertain asset quality outlook and higher provisioning pressure will remain an overhang on stock performance.
However, Spark Capital maintains ‘Buy’ rating on the stock with a target price of Rs 302. A steady shift to the lower risk retail book (75% of incremental growth over the last year), cost containment, value unlocking in the subsidiaries coupled with sturdy operating metrics and valuation comfort remain the key drivers, the brokerage firm said in a report.
At 12:57 pm, the stock was down 3.9% at Rs 253 on the BSE, compared to 0.13% decline in the S&P BSE Sensex. A combined 3.7 million shares changed hands on the counter on the BSE and NSE.
The net NPAs of the bank also increased to 3.35% in reported quarter comparison to 2.98% in previous quarter and 1.58% in the year-ago quarter.
The private sector lender, reported a 25% year-on-year (YoY) fall in its net profit at Rs 2,232 crore in the June quarter, compared with Rs 2,976 crore in the same period a year ago. Net interest income (NII), the difference between interest earned and interest expended, remained flat at Rs 5,159 crore, compared with Rs 5,115 crore.
“Operationally the bank reported flattish trend in NII while strong other income aided by treasury gains and repatriation gains helped deliver a beat on total revenues,” analysts at Antique Stock Broking said in a result review note.
The brokerage firm retains ‘Hold’ rating on the stock as it believe that uncertain asset quality outlook and higher provisioning pressure will remain an overhang on stock performance.
However, Spark Capital maintains ‘Buy’ rating on the stock with a target price of Rs 302. A steady shift to the lower risk retail book (75% of incremental growth over the last year), cost containment, value unlocking in the subsidiaries coupled with sturdy operating metrics and valuation comfort remain the key drivers, the brokerage firm said in a report.
At 12:57 pm, the stock was down 3.9% at Rs 253 on the BSE, compared to 0.13% decline in the S&P BSE Sensex. A combined 3.7 million shares changed hands on the counter on the BSE and NSE.
