ICICI Bank jumps over 8.5%

Market heaved a sigh of relief after ICICI Bank announced its Q2FY19 results; its asset quality has actually improved and that in today’s troubled times is a good thing.

The Bank’s net profit for the quarter fell 56% (YoY) ay Rs.909 crore mainly on account of 330 bps rise in provision coverage at 69.4% (YoY). But the good news here is that QoQ, the Bank has actually swung back from a loss as provisioning has sequentially come down.

NII for the quarter was up 12% at Rs.6418 crore on the back of a 13% rise in loan book – this is a 11 quarter high. Retail loans showed a 20% (YoY) rise, comprising 57% of its total loan portfolio now. NIM improved from 3.24% to 3.33% (QoQ).

In terms of asset quality, Gross NPA came in lower at 8.54% v/s 8.81% (QoQ) on account of a fall in slippages. Net NPA improved from 4.19% to 8.54%.

The stock price has jumped up over 8.5% to Rs.342 and is among the top five gainers on the BSE currently. Its 52-week high is at Rs.365.65.