ICICI Bank Q1 Review – Slippages Rise; Structural Strengthening Of NIM A Positive: Dolat Capital

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ICICI Bank Ltd. reported strong operating metrics with marginally higher net interest margin q-o-q at 3.9% despite elevated interest reversals, healthy core pre provision operational profit/assets at 2.8%, and better than expected advances growth at 17% y-o-y, with domestic book growing by 20% y-o-y.

NIM benefitted from a continued decline in cost of fund, sequentially higher credit-deposit ratio, and further reduction in non-India linked overseas book.

With continued strengthening of NIM over the last two quarters despite high interest reversals, we factor in seven-eight basis points higher NIM for FY22/23E.

ICICI Bank will also be a key beneficiary of reversal in interest rate cycle with a large marginal cost of funds based lending rate/repo linked book (at 64%).

Click on the attachment to read the full report:

Dolat Capital ICICI Bank Q1FY22 Result Update.pdf


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