ICICI Bank Q4FY18 result preview: Will higher provisions dent profitability?

ICICI Bank is likely to announce its results for the March 2018 quarter (Q4FY18) results today. In the previous quarter, the bank’s net profit fell 32% in the quarter ended December 2017 due to lower income from treasury even as provisions for non-performing assets (NPAs) remained elevated.

Investors will keep a tab on the provisions the bank makes for non-performing loans (NPLs). This assumes significance as another private sector banking major, Axis Bank, reported a net loss of Rs 21.8 billion for the quarter ended March 2018 (Q4FY18), as non-performing assets (NPAs) soared and provisions for bad loans surged three times over the corresponding quarter last year

That apart, the numbers will be released against the backdrop of Central Bureau of Investigation (CBI) registering a preliminary enquiry (PE) against ICICI Bank Managing Director (MD) and Chief Executive Officer (CEO) Chanda Kochhar's husband Deepak Kochhar, officials of the Videocon group and others to determine whether any wrongdoing was involved in the sanctioning of Rs 32.5 billion (Rs 3,250 crore) loan to the Videocon Group by the ICICI Bank as part of a consortium of banks in 2012.

GET LIVE UPDATES ON MARKET