ICICI Bank Q3 Results Review - RoA Seems To Settle At A Premium Level: Yes Securities

Yes Securities Report

A 10 basis points sequential margin compression was contributed to by multiple nonstructural factors, other than rise in cost of deposits:

The key reason for ICICI Bank Ltd.'s sequential decline in net interest margin was the lagged impact of rise in cost of deposits. The yield on advances declined 2 basis points QoQ to 9.79%.

The impact from interest on income tax refund on NIM amounted to 3 bps for the quarter compared with nil impact in Q2. There was also some negative impact due to derecognition of interest income on part of the Kisan Credit Card loan book but the same has not been quantified.

ICICI Bank reiterated that full year FY24 margin would be similar to FY23. This implies that there would be some more margin compression in Q4 but the quantum would be lower than earlier.

Management stated that the share of highyielding loans is still not that high, implying further scope for ramp up.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.