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ICICI Bank Q1 profit rises 40% to Rs 9,648 cr, net interest income up 38%

The gross NPA ratio was 2.76 per cent at June 30, 2023, compared to 2.81per cent at March 31, 2023

ICICI

Photo: Bloomberg

Manojit Saha Mumbai

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ICICI Bank – the country’s second-largest private sector lender – reported 39.7 per cent year-on-year (YoY) growth in its net profit to Rs 9,648 crore for the April-June period – a record high – due to healthy growth in the core business.

Net interest income (NII) increased by 38 per cent year-on-year to Rs 18,227 crore while non-interest income excluding treasury gains, increased by 12 per cent year-on-year to Rs 5,183 crore. There was a treasury gain of Rs 252 crore in Q1-2024 compared to a gain of Rs 36 crore in Q1-2023.

Provisions (excluding provision for tax) were Rs 1,292 crore in Q1-2024 compared to Rs 1,144 crore in Q1-2023. The net interest margin was 4.78 per cent in Q1-2024 compared to 4.01 per cent in Q1-2023 and 4.90 per cent in Q4-2023.

The bank expects margins to come under pressure as more and more deposits get re-priced at a higher rate. The growth is current and savings account deposits – which are the low-cost deposits- was only 9 per cent.

“Our average Casa ratio for this quarter was 42.6 per cent [43.6 per cent in March 2023]. Total deposit growth was 17.9 per cent. “When term deposit rates increase – which has now increased in the last 6-9 months significantly – people move to term deposit a lot more,” said Sandeep Batra, executive director, ICICI Bank.

“We do expect re-pricing of deposits in the next couple of quarters,” Batra said during the post-earnings media interaction when asked on net interest margins while adding NIMs for FY24 would be around the same level as FY22, which was 4.5 per cent.

The net domestic advances grew by 20.6 per cent year-on-year and 4.0 per cent sequentially on June 30, 2023. The retail loan portfolio grew by 21.9 per cent year-on-year and 4.5 per cent sequentially and comprised 54.3 per cent of the total loan portfolio on June 30, 2023.

Including non-fund outstanding, the retail portfolio was 45.9per cent of the total portfolio on June 30, 2023.

The gross NPA ratio was 2.76 per cent at June 30, 2023, compared to 2.81 per cent at March 31, 2023. The net NPA ratio was 0.48 per cent at June 30, 2023, compared to 0.48 per cent on March 31, 2023, and 0.70 per cent on June 30, 2022.

The net addition to gross NPAs, excluding write-offs and sales, was Rs 1,807 crore. Recoveries and upgrades of NPAs, excluding write-offs and sales, were Rs 3,511 crore in Q1-2024 compared to Rs 4,283 crore in Q4-2023. ICICI Bank has written off gross NPAs amounting to Rs 1,169 crore in Q1-2024. The provision coverage ratio on NPAs was 82.4 per cent on June 30, 2023. 

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First Published: Jul 22 2023 | 6:26 PM IST

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