ICICI Bank’s Robust Q3 Performance: Net Profit Surges 24% to ₹10,272 Crore, Provisions Decline – Key Highlights

Private lender ICICI Bank Ltd has reported a robust standalone net profit of ₹10,271.54 crore for the December quarter, showcasing a significant 23.57% YoY growth. The bank’s Q3 results also reveal noteworthy improvements in provisions, net interest income (NII), and various business segments. Here are the key takeaways from ICICI Bank’s Q3FY24 performance.

Financial Highlights:

1. Net Profit: ICICI Bank’s standalone net profit surged by 23.57% YoY to ₹10,271.54 crore, exceeding analyst expectations and demonstrating a strong financial performance.
2. Provisions: Provisions for the quarter stood at ₹1,049.37 crore, higher than the September quarter but lower than the year-ago period. This aligns with market expectations, indicating prudent risk management.
3. Net Interest Income (NII): NII for the quarter increased by 13.4% YoY to ₹18,678 crore, meeting street estimates. The net interest margin (NIM) was reported at 4.43%, slightly lower than the previous quarter but in line with expectations.
4. Asset Quality: The gross NPA ratio declined to 2.30% at December 31, 2023, showcasing improvements from the previous quarter. The net NPA ratio remained stable at 0.44%.
5. Credit Growth: Net domestic advances grew by 18.8% YoY, with robust performance in retail, business banking, SME, and rural portfolios. The overall loan portfolio increased by 18.5% YoY to ₹11,53,771 crore.

Business Segment Performance:

1. Non-Interest Income: Excluding treasury, non-interest income rose by 19.8% YoY to ₹5,975 crore. Fee income, particularly from retail, rural, business banking, and SME customers, constituted about 79% of total fees in Q3.
2. Credit Quality: Gross NPA additions were reported at ₹5,714 crore, with recoveries and upgrades of NPAs at ₹5,351 crore. The provisioning coverage ratio on NPAs stood at 80.7% at December 31, 2023.
3. Capital Adequacy: The bank’s total capital adequacy ratio at December 31, 2023, was reported at 16.70%, exceeding regulatory requirements. The CET-1 ratio was 16.03%.

Outlook and Conclusion:

ICICI Bank’s Q3FY24 results reflect a robust financial performance, with strong growth in profits, prudent provisioning, and improved asset quality. The bank’s focus on diverse segments, along with a resilient credit portfolio, positions it well for future opportunities. Investors and analysts are likely to closely monitor the bank’s strategies and risk management practices for sustained growth.