ICICI Bank rises and shines
ICICI Bank has done so well, both on the Q4FY17 performance front as well as today’s ride on the bourses. With volumes going up almost 4 times, the stock has risen over 8% at Rs.295.60 – it is now so close to its 52-week high of Rs.298.20. The fact that it announced a 1:10 bonus also added to the surge in price.
Though asset quality remains contentious, the Bank’s profitability left everyone dazzled. Its net profit jumped up 188% (YoY) at Rs.2027 crore. This was a lower bas effect at play as in previous Q4, the Bank had made provisions which had impacted its bottomline. In Q4FY17, provisions have come down sharply YoY at Rs.2898 crore v/s Rs.3326 crore in previous Q4 and Rs.2713 crore on a sequential basis.
The Bank’s rise in NII was modest at Rs.5962 crore, up 10%. NIM was at 3.57% v/s 3.12% (QoQ).
Asset quality fell further – Gross NPA was at 7.89% v/s 7.20% (QoQ) and Net NPA too deteriorated further at 4.89% v/s 3.96%. The Bank’s slippages rose sharply to Rs.11,289 crore and of this, Rs.5378 crore was attributed to one company in the cement sector, which is most likely Jaiprakash Associates.
It’s total advances rose 7% (YoY) at Rs.4.64 lakh crore while deposits were up 16% at Rs.4.90 lakh crore. CASA at 31st March 2017 stands at 50.4% v/s 45.8% (YoY).