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ICICI Bank shares tumble nearly 6 per cent after Q1 results; brokerage maintains their ‘buy’ call

On Saturday the bank said its total income during the quarter rose 21.78 per cent to Rs 26,066 crore from Rs 21,405.50 crore a year earlier.

SNS | New Delhi |

The share price of ICIC Bank on Monday fell nearly 6 per cent on the indices, after the private lender posted a 36.22 per cent rise in net profit to Rs 2,599.15 crore in the first quarter.

The stock fell as much as 5.59 per cent to Rs 360.45 per share.

At the NSE, it tanked to Rs 360.55, down by 5.57 per cent.

On Saturday the bank said its total income during the quarter rose 21.78 per cent to Rs 26,066 crore from Rs 21,405.50 crore a year earlier. On a consolidated basis, its net profit for the April-June period improved by 24 per cent at Rs 3,117.68 crore as against Rs 2,513.69 crore in the corresponding quarter of the previous fiscal.

The non-performing assets (NPAs), ICICI Bank witnessed an improvement in asset quality as it were 1.23 per cent, down from 1.77 per cent a year ago. The gross non-performing assets (NPAs) fell to 5.46 per cent of the gross advances by the end of June 2020, from 6.49 per cent a year ago.

However, the provisioning for bad loans and contingencies doubled to Rs 7,593.95 crore for April-June, as against Rs 3,495.73 crore a year earlier.

“During Q1 FY21, the bank has made an additional COVID-19 related provision amounting to Rs 5,550 crore. At June 30, 2020, the bank held COVID-19 related provision of Rs 8,275 crore. This additional provision made by the bank is more than required as per the RBI guideline dated April 17, 2020,” it had said.

Meanwhile, a CNBC report suggested that brokerage firms like Edelweiss Securities and IDFC Securities are in favour to maintain ‘buy’ call on the ICICI stocks and raised their target to Rs 525 per share and Rs 515 per share respectively. They said lender’s stable income cushioned any earning impact.