ICICI Bank net profit up 14.6% – Banking & Finance News

ICICI Bank, the country’s second-largest private lender, on Saturday announced a 14.6% year-on-year increase in net profit to Rs 11,059 crore for the June quarter, helped by strong loan growth. The lender surpassed street expectations as Bloomberg estimates had pegged the profits at Rs 10,739 crore.

Net interest income rose 7% to Rs 19,553 crore in the June quarter of current fiscal from Rs 18,227 crore in the same quarter of the previous fiscal. 

The net interest margin (NIM) of the lender shrunk to 4.36% in the first quarter from 4.78% in same quarter of previous year.  “We have grown at much faster pace in the past, but given the fact that we were having a very benign credit cost and much higher NIM, this is now becoming a more normalised pace. And from overall banks’ perspective, we have to see that both advances and liabilities have grown at about 15%,” said Sandeep Batra, executive director, ICICI Bank, in an earnings call. “We are happy with the progress, can we do better. Of course, we can do better,” he said.

Total advances increased by 15.7% year-on-year and 3.3% sequentially to Rs 12.23 trillion on June 30. The retail loan portfolio grew by 17.1% year-on-year and 2.4% sequentially, and comprised 54.4% of the total loan portfolio on June 30.

The business banking portfolio grew by 35.6% year-on-year and 8.9% sequentially at June 30. The SME business, comprising borrowers with a turnover of less than Rs 250 crore, grew by 23.5% year-on-year and 4% sequentially on June 30. The domestic corporate portfolio grew by 10.3% year-on-year and 3.1% sequentially on June 30. Deposits of the bank increased by 15.1% year-on-year and 0.9% sequentially to Rs 14.26 trillion as of June this year.

Commenting on the draft LCR norms by the Reserve Bank of India, Batra said the guidelines will have an impact on deposit costs, loan growth, lending rates, and investment yields.

The bank improved its asset quality as its gross non-performing assets (NPA) ratio declined to 2.15% on June 30 this year from 2.16% on March 31. The net NPA ratio was 0.43% on June 30 compared to 0.42% on March 31. Provisions for bad loans rose marginally to Rs 1,332 crore in the first quarter compared to Rs 1,292 crore in the same quarter in the previous fiscal.

Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,292 crore during the quarter compared to Rs 3,918 crore in the fourth quarter of previous fiscal.

With the addition of 64 branches during the first quarter, the bank had a network of 6,587 branches and 17,102 ATMs and cash recycling machines as of June-end this year.

ICICI Bank has infused Rs 500 crore in its home finance subsidiary, ICICI Home Finance, in the first quarter of fiscal year 2025, the bank’s executive director (ED) Sandeep Batra said. The bank has till now infused Rs 1,862 crore through equity in the subsidiary.