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ICICI Bank Q2 profit, net interest income may grow 15%

Profit may increase to Rs 2,713 crore from Rs 2,352 crore and net interest income is seen rising to Rs 4,647 crore from Rs 4,043 crore during the same period.

Top private sector lender  ICICI Bank is expected to report a 15 percent growth each (year-on-year) in profit after tax and net interest income in July-September quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Profit may increase to Rs 2,713 crore from Rs 2,352 crore and net interest income is seen rising to Rs 4,647 crore from Rs 4,043 crore during the same period.

Loan growth is likely to moderate or similar to Q1FY15. Analysts expect a 13 percent growth in credit on yearly basis led by retail that has picked up over last few quarter. In Q1FY15, credit growth was up 15 percent with retail up 26 percent Y-o-Y while corporate loan growth was 8 percent.

Net interest margin is expected to be at 3.4 percent in Q2FY15, flat compared to previous quarter and up 10 basis points compared to same quarter last year.

Non-interest income may grow to even 25-29 percent Y-o-Y mainly led by higher contribution from profit on sale of investments (as against a loss in Q2FY14). However, fee income may remain sluggish. In the year-ago period, other income was up 15 percent but fee income was up 8 percent Y-o-Y due to slowdown in corporate fee.

Asset quality is expected to be stable during the quarter, say analysts. In Q1FY15, fresh restructuring was lower at Rs 1,394 crore as against Rs 2,156 crore on sequential basis and fresh slippages stood at Rs 1,195 crore versus Rs 1,241 crore Q-o-Q while recoveries stood at Rs 400 crore. Restructured book as of June 2014 was Rs 11,265 crore against Rs 10,558 crore at the end of March 2014.

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