ICICI Bank Q3 preview: Essar Steel recovery may trim provisions, aid profit

As per estimates by Motilal Oswal Financial Services, the bank is poised to write-back provisions worth Rs 2,100 crore (Essar Steel), & Rs 400 crore (Rs 200 crore each from Ruchi Soya & Bhushan Power)

For private lender ICICI Bank, one-time gain from Essar Steel resolution would be the biggest factor driving the bank’s December quarter earnings for FY20 (Q3FY20). On the back of an estimated recovery worth over Rs 2,000 crore, the bank is likely to see provision write-off, stable slippages, and improved credit cost.

At the bourses, the bank has outperformed the indices during the quarter under review. Between October and December, 2019, the stock of the lender surged 24.3 per cent, as against a 6.68 per cent rise in the benchmark S&P BSE Sensex. The S&P BSE Bankex index, meanwhile, gained 11.5