Just like its peers, ICICI Bank Ltd has strengthened its provisions to mitigate potential risks arising out of the covid-19 pandemic and the subsequent lockdown, but investors should not take their eyes off elevated slippages.
The private lender reported a net profit of ₹1,221 crore for the March quarter, missing analysts’ estimates by a mile. An average of estimates of 16 analysts polled by Bloomberg expected net profit to be ₹3,510.50 crore for Q4.
Profit took a hit as ICICI Bank chose to make higher provisions than what was mandated by the Reserve Bank of India (RBI). In that light, the net profit miss could be overlooked.