Banks Q1 Preview- Seasonality To Ensue; Pressure On NII/PAT Growth But RoA To Remain Healthy: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We estimate systemic loan growth to remain healthy at ~16% YoY/~2% QoQ while deposits should continue to lag at ~13% YoY (~2% QoQ versus 5% in Q4 FY24). We estimate 5–10 basis points QoQ dip in net interest margins for most of the banks due to adverse seasonality and cost of deposits inching up. RBL Bank (uptick of 5 bps QoQ) and Kotak Mahindra Bank Ltd. (down ~15 bps QoQ) are likely to be outliers. Overall, we estimate NII growth for our private banks (excluding-HDFC Bank) coverage at ~15% YoY, lower than loan growth of ~17% YoY. Opex is likely to soften a bit, but would remain firm, restricting operating profits growth at less than 10% YoY (and stable QoQ). While we model higher gross/net slippages QoQ across banks, it is mainly due to adverse seasonality QoQ (and is similar YoY), suggesting limited impact from election-related disruptions. Despite pressure on profit after tax growth, we expect healthy return ratios for most of the banks..Click on the attachment to read the full report:.Building Material Q1 Results Preview- Pipe Companies To Report Healthy Volume, Profitability: ICICI Securities.DISCLAIMERThis 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.

Banks Q1 Preview- Seasonality To Ensue; Pressure On NII/PAT Growth But RoA To Remain Healthy: ICICI Securities

Credit growth sustaining at ~16% YoY; deposits continue to lag at ~13% YoY; QoQ growth at ~2% for both

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Banks Q1 Preview- Seasonality To Ensue; Pressure On NII/PAT Growth But RoA To Remain Healthy: ICICI Securities

Credit growth sustaining at ~16% YoY; deposits continue to lag at ~13% YoY; QoQ growth at ~2% for both

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