ICICI BANK'S PROFITABILITY SOLID DESPITE AIF PROVISIONING, MARGIN PRESSURE

ICICI Bank foreseen to maintain strong earnings with robust credit growth and low costs, projecting a 2% return on assets despite rising costs, according to S&P Global and Nomura Ratings

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Private sector lender ICICI Bank is likely to maintain healthy earnings despite a rising cost of funds and one-time hit from provisions on alternative investment funds (AIF), with robust credit growth and low credit costs supporting the earnings forecast of a return on assets of about 2 per cent, S&P Global Ratings said on Tuesday. The bank reported another solid show in 3QFY24, with PAT at INR102.7 bn, up 23.6 per cent yoy -- 3 per cent and return on assets (RoA) stable at a sector-leading 2.35 per cent, according to Nomura Ratings.