The News International Team
12:30pm ICICI Bank in focus
ICICI Bank, the largest private sector lender in India, is expected to report 15 percent (each) growth in profit and net interest income of the third quarter, according to the average of estimates of analysts polled by CNBC-TV18. Numbers will be announced today.
Profit is likely to increase to Rs 2,923 crore in the quarter ended December 2014 from Rs 2,532 crore in same quarter last year while net interest income (NII) may climb to Rs 4,874 crore from Rs 4,225 crore during the same period. NII is the difference between interest earned and interest expended.
After the second quarter earnings, Chanda Kochhar, MD & CEO of the private sector lender had said the stressed assets additions peaked. Hence, whether the bank is able to maintain that guidance or not is the key factor to watch out for.
Within asset quality, restructured loans and slippages from restructured book will be closely watched. Restructured loans were lower sequentially at over Rs 820-830 crore against Rs 1,394 crore, but restructuring pipeline is estimated at around Rs 1800 crore after Q2 earnings.
Also slippages from restructured book will be watched. In Q2FY15, 50 percent of slippages were from the restructured book (Rs 800 crore of Rs 1,670 crore odd).
The street will watch the commentary of the bank on likes of Dabhol, coal auction, Bhushan Steel loans.
12:00pm Market Check
The market failed to take positive cues from the global markets. The Nifty hit an intraday high of 8,996, but retraced more than 150 points from there. The index lost 116.25 points or 1.30 percent to trade at 8836.10.
The Sensex tanked 398.52 points or 1.34 percent to 29283.25 while the BSE Midcap and Smallcap indices declined 0.5 percent each.
About 1043 shares have advanced, 1433 shares declined, and 237 shares are unchanged on the Bombay Stock Exchange.
Bank Nifty was the biggest loser among sectoral indices, falling more than 500 points (or 2.6 percent) following disappointing performance from Bank of Baroda. PSU Bank index lost more than 5 percent.
Bank Of Baroda crashed 12 percent as net profit of the PSU lender fell 68 percent (Y-o-Y) to Rs 334 crore for quarter ended December 2014. Higher provisions and tax rate impacted the bottomline.
“We don’t expect NPA accretions to come down much in 1-2 quarter. Pressure on debt recasts and asset quality will continue in Q4 as we have major issues w.r.t 2-3 accounts,” Ranjan Dhawan, executive director of the bank.
State Bank of India slipped 4 percent. ICICI Bank, HDFC, HDFC Bank and Axis Bank declined 1-2.5 percent.
HCL Technologies topped the buying list on Nifty, up 8 percent after the company reported a strong quarter with broad-based growth. It reported a dollar revenue growth of 4 percent leading its peers such as Infosys, TCS and Wipro. Constant currency growth of 6.2 percent was the highest in 16 quarters.
Coal India shed 3 percent as the offer for sale for 5 percent stake in company is underway. The government plans to sell 31.58 crore shares today with a greenshoe option of an additional 5 percent stake.
Adani Enterprises is in focus ahead of its board meeting today. The company is expected to announce a corporate restructuring to create a cleaner entity. The stock gained 4 percent.