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Shares of ICICI Bank reversed early losses on asset quality optimism. The stock jumped as much as 1.5 per cent, reversing early losses of up to 2 per cent. However, it ended lower by 0.13 per cent at Rs 300.55 on the BSE.
Q2 profit fell more than expected to Rs 2,058 crore ($316.47 million), but bad loans remained stable.
ICICI Bank reported a 33 per cent drop in net profit at ₹2,058 crore in the quarter ended September 30 compared with ₹3,102 crore in the year-ago period.
While the earnings were way below street expectations, the bank’s decline in profit was largely due to base effect of a one-time exceptional gain in the previous accounting period.
Jefferies has upgraded the stock to 'buy', citing “greater comfort” in bad loan additions going forward. Goldman has reiterated 'buy' on 'conviction list'; it says India the central bank's audit of the bank's bad loans is not completed but unlikely to result in a “major disappointment".
Nomura expects gradual asset quality stability for ICICI Bank, and has retained 'buy' rating. ** Out of 44 analysts covering the stock, 19 rate it 'strong buy' and 23 at 'buy' while the rest have a 'hold' or below ratings.
(With inputs from Reuters)
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