ICICI Banks Q1 Profit Up 40% YoY To Rs 9,648, Beats Estimate

ICICI Bank, a private sector lender, surpassed market expectations by posting a net profit of Rs 9,648 crore for the first quarter of the current financial year, marking a significant 40 per cent increase compared to the same period last year, which was well above the anticipated figure of Rs 8,982 crore.

In the corresponding quarter of the previous financial year, the bank recorded a net profit of Rs 6,905 crores. Furthermore, the net interest income (NII) of the lender witnessed a remarkable 38 per cent year-on-year growth, reaching Rs 18,227 crore in the April-June FY24 quarter, compared to Rs 13,210 crore in the same quarter of the previous year.

In the current quarter, the bank's net interest margin (NIM) strengthened to 4.78 per cent, exhibiting notable progress from 4.01 per cent recorded in the same quarter last year.

Moreover, the bank's asset quality demonstrated improvement, with the gross non-performing assets (GNPAs) declining to 2.76 per cent, down from 3.4 per cent in the year-ago period. Additionally, the net non-performing assets (NNPA) saw a decrease to 0.48 per cent from 0.70 per cent in the year-ago quarter.

Credit growth

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 45.9 per cent of the total portfolio on June 30, 2023. The business banking portfolio grew by 30.4 per cent year-on-year and 3.8 per cent sequentially on June 30, 2023. 

The SME business, comprising borrowers with a turnover of less than Rs 250 crore (US$ 31 million), grew by 28.5 per cent year-on-year and 5.0 per cent sequentially on June 30, 2023. The rural portfolio grew by 17.6 per cent year-on-year and 3.6 per cent sequentially on June 30, 2023. The domestic corporate portfolio grew by 19.3 per cent year-on-year and 2.8 per cent sequentially on June 30, 2023. Total advances increased by 18.1 per cent year-on-year and 3.7 per cent sequentially to Rs 10,57,583 crore (US$ 128.9 billion) at June 30, 2023.

Asset quality

The gross NPA ratio was 2.76 per cent on 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 at March 31, 2023, and 0.70 per cent at June 30, 2022. The net addition to gross NPAs, excluding write-offs and sale, were Rs 1,807 crore (US$ 220 million) in Q1-2024 compared to Rs 14 crore (US$ 2 million) in Q4-2023. The gross NPA additions were Rs 5,318 crore (US$ 648 million) in Q1-2024 compared to Rs 4,297 crore (US$ 524 million) in Q4-2023. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ? 3,511 crore (US$ 428 million) in Q1-2024 compared to Rs 4,283 crore (US$ 522 million) in Q4-2023. The Bank has written off gross NPAs amounting to Rs 1,169 crore (US$ 142 million) in Q1-2024. The provision coverage ratio on NPAs was 82.4 per cent at June 30, 2023.