ICICI Bank jumps despite negative numbers

ICICI Bank, one of India's largest private sector banks, posted Q4FY18 and full year results on Tuesday. The NII for the quarter rose by 1 per cent in Q4FY18 vs Rs. 5,962 crore in Q4FY17. This minimal growth was largely due to higher interest expenses, which increased by 8 per cent yoy. The interest income for the quarter rose by 5.1 per cent yoy.

The asset quality deteriorated drastically for the bank as GNPAs for the quarter stood at 8.84 per cent in FY18 vs 7.89 per cent yoy. Also, the NNPA for the quarter rose by 57 bps to 4.77 per cent in Q4FY18 vs 4.20 per cent in the previous quarter and 4.89 per cent in Q4FY17.

The provisions jumped substantially for the quarter and for full year. The provisions rose by 128 per cent yoy to Rs. 6,625 crore in Q4FY18 vs Rs. 2,898 crore in Q4FY17 and for the full it rose by 83 per cent yoy to Rs. 17,972 crore in FY18 vs Rs. 16,582 crore in FY17.

The resultant bottom-line saw 49 per cent yoy decline and 38 per cent qoq decline to Rs. 1,020 crore in Q4FY18 vs Rs. 2,024 crore in Q4FY17 and Rs. 1,650 crore in Q3FY18.The capital adequacy of the bank improved significantly to 18.42 per cent CAR as of Q4FY18. Lastly, the advances grew by 10 per cent yoy.

The stock gained as much as 8 per cent in Tuesday's trading session, as the market seemed to believe that the worst is over for the bank and steady recovery and shorter watchlist will arrest further asset-quality deterioration