Overview
ICICI Bank, a prominent private lender, has reported strong financial results for the third quarter (Q3) of the fiscal year. The standalone net profit for Q3 surged by 23.57% year-on-year, reaching Rs 10,271.54 crore, demonstrating robust performance compared to the same period last year.
Provisions and Net Interest Income
Provisions for the quarter amounted to Rs 1,049.37 crore, reflecting an increase from the previous quarter but a decline from the year-ago figure. Net Interest Income (NII) registered a notable growth of 13.4% year-on-year, reaching Rs 18,678 crore, in line with market expectations.
Asset Quality
The gross NPA ratio improved to 2.30% at the end of December 2023, showcasing a decline from the previous quarter. The net NPA ratio was reported at 0.44%, with recoveries and upgrades contributing positively. The bank's provisioning coverage ratio on NPAs stood at a robust 80.7% as of December 31, 2023.
Credit Growth
ICICI Bank experienced healthy credit growth, with net domestic advances increasing by 18.8% year-on-year. The retail loan portfolio demonstrated robust growth, comprising 54.3% of the total loan portfolio. The business banking and SME segments also exhibited substantial expansion.
Deposit Growth
Deposits witnessed a substantial uptick, growing by 18.7% year-on-year to Rs 13,32,315 crore at the end of December 2023. Period-end term deposits increased significantly by 31.2% year-on-year, reaching Rs 8,04,320 crore.
Fee Income and Non-Interest Income
Fee income for the quarter rose by 19.4%, reaching Rs 5,313 crore, with fees from retail, rural, business banking, and SME customers constituting 79% of the total fees. The non-interest income, excluding treasury, also saw a substantial increase of 19.8% year-on-year.
Capital Adequacy
ICICI Bank's capital adequacy remains robust, with the total capital adequacy ratio at 16.70% and CET-1 ratio at 16.03% as of December 31, 2023. These figures comfortably exceed the minimum regulatory requirements, indicating a strong financial position.
Conclusion
The Q3 results underscore ICICI Bank's resilience and sound financial management. The bank's focus on credit growth, deposit mobilization, and prudent provisioning has contributed to a positive performance, positioning it well for continued stability in the evolving economic landscape.
Overview
ICICI Bank, a prominent private lender, has reported strong financial results for the third quarter (Q3) of the fiscal year. The standalone net profit for Q3 surged by 23.57% year-on-year, reaching Rs 10,271.54 crore, demonstrating robust performance compared to the same period last year.
Provisions and Net Interest Income
Provisions for the quarter amounted to Rs 1,049.37 crore, reflecting an increase from the previous quarter but a decline from the year-ago figure. Net Interest Income (NII) registered a notable growth of 13.4% year-on-year, reaching Rs 18,678 crore, in line with market expectations.
Asset Quality
The gross NPA ratio improved to 2.30% at the end of December 2023, showcasing a decline from the previous quarter. The net NPA ratio was reported at 0.44%, with recoveries and upgrades contributing positively. The bank's provisioning coverage ratio on NPAs stood at a robust 80.7% as of December 31, 2023.
Credit Growth
ICICI Bank experienced healthy credit growth, with net domestic advances increasing by 18.8% year-on-year. The retail loan portfolio demonstrated robust growth, comprising 54.3% of the total loan portfolio. The business banking and SME segments also exhibited substantial expansion.
Deposit Growth
Deposits witnessed a substantial uptick, growing by 18.7% year-on-year to Rs 13,32,315 crore at the end of December 2023. Period-end term deposits increased significantly by 31.2% year-on-year, reaching Rs 8,04,320 crore.
Fee Income and Non-Interest Income
Fee income for the quarter rose by 19.4%, reaching Rs 5,313 crore, with fees from retail, rural, business banking, and SME customers constituting 79% of the total fees. The non-interest income, excluding treasury, also saw a substantial increase of 19.8% year-on-year.
Capital Adequacy
ICICI Bank's capital adequacy remains robust, with the total capital adequacy ratio at 16.70% and CET-1 ratio at 16.03% as of December 31, 2023. These figures comfortably exceed the minimum regulatory requirements, indicating a strong financial position.
Conclusion
The Q3 results underscore ICICI Bank's resilience and sound financial management. The bank's focus on credit growth, deposit mobilization, and prudent provisioning has contributed to a positive performance, positioning it well for continued stability in the evolving economic landscape.
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