After bad asset quality performance of Axis Bank and Yes Bank, the Street will closely watch non-performing assets and slippages of ICICI Bank for the quarter ended September 2017. Earnings will be announced on Friday.
The private sector lender’s second quarter (July-September) profit is expected to decline 18.6 percent year-on-year to Rs Rs 2,525.1 crore but may increase 23 percent sequentially, according to average of estimates of analysts polled by CNBC-TV18.
Net interest income during the quarter is seen rising 8.5 percent to Rs 5,697.4 crore, compared with Rs 5,253.3 crore in same quarter last fiscal.
Key things to watch for:-
Analysts feel if slippages come below Rs 5,000 crore then that will be taken positively by the Street.
Movement of stressed assets (sale to asset reconstruction companies, addition to S4A, 5/25 & strategic debt restructuring) and loan growth (3.3 percent in Q1FY18 YoY) will be seen closely.
Management commentary on (future outlook of) stressed loans will be very important (like their view on stressed assets turn around; slippages from watchlist going ahead; the movement in watchlist, restructuring of stressed accounts via 5/25, S4A or SDR route, etc), analysts said.