ICICI Bank Q3 Results: Profit after tax grows 35%, bad loans ratio declines

Private sector major ICICI Bank on Saturday reported that its profit after tax grew by 34.2 per cent year-on-year to Rs 8,312 crore in the December quarter.  It reported that its net NPA ratio declined to 0.55 per cent on December 31, 2022, from 0.61 per cent on September 30, 2022. 

The bank, in its filing, said that its net interest income (NII) increased by 34.6 per cent YoY to Rs 16,465 crore in Q3. ICICI Bank’s net interest margin increased to 4.65 per cent in the December quarter compared to 3.96 per cent in the year-ago quarter. It was 4.31 per cent in Q2 of the current financial year.

The bank said its deposits grew by 10.3 per cent YoY to Rs 11,22,049 crore and loan portfolio recorded a growth of 19.7 per cent YoY. Provisions (excluding provision for tax) increased by 12.5 per cent YoY to Rs 2,257 crore in Q3.

Other highlights

1. Core operating profit (profit before provisions and tax, excluding treasury income) grew by 31.6% year-on-year to Rs 13,235 crore (US$ 1.6 billion) in the December quarter.

2. Total period-end deposits grew by 10.3 per cent year-on-year to Rs 11,22,049 crore on December 31, 2022

3. Average current account and savings account (CASA) ratio was 44.6 per cent in Q3-2023
4. Overall loan portfolio grew by 19.7 per cent year-on-year
5. Domestic loan portfolio grew by 21.4 per cent year-on-year
6. Provisioning coverage ratio on non-performing assets was 82.0 per cent on December 31, 2022
7. Including profits for the nine months ended December 31, 2022 (9M-2023), the total capital adequacy ratio was 18.33 per cent and Tier-1 capital adequacy ratio was 17.58 per cent on a standalone basis for Q3.

Profit and loss statement

> The core operating profit (profit before provisions and tax, excluding treasury income) increased by 31.6 per cent year-on-year to Rs 13,235 crore (US$ 1.6 billion) in Q3  from Rs 10,060 crore in the Q3 2021-22.

> Net interest income (NII) increased by 34.6 per cent year-on-year to Rs 16,465 crore in Q3-2023 from ` 12,236 crore in Q3 2022.
> Non-interest income, excluding treasury income, increased by 1.8 per cent year-on-year to Rs 4,987 crore in Q3-2023 from Rs 4,899 crore in Q3-2022.
> Fee income grew by 3.7 per cent year-on-year to Rs 4,448 crore (US$ 538 million) in Q3-2023 from Rs 4,291 crore in Q3-2022.

> Fees from retail, rural, business banking and SME customers constituted about 78 per cent of total fees in Q3- 2023
> There was a treasury gain of Rs 36 crore in Q3-2023 compared to Rs 88 crore (US$ 11 million) in Q3-2022
 

On Friday, Business Today reported that ICICI Bank may record a 30 per cent growth in its net profit. Sharekhan analysts said that ICICI Bank may report 29.2 per cent YoY rise in net profit at Rs 8,002 crore for the December quarter compared with Rs 6,194 crore in the year-ago quarter.  Advances are likely to grow by 20 per cent YoY, aided by broad based growth in all segments, the brokerage said adding that NIM may remain stable QoQ with positive upward bias. Deposit growth and margins outlook would be key things to watch, it said.

Elara Securities said ICICI Bank’s profit at Rs 8,148 crore, up 31.6 per cent. It sees NII growing 31.4 per cent YoY to Rs 16,080 crore. Provision is seen rising 14 per cent YoY sequentially to Rs 1,877 crore from Rs 1,644 crore but would be down from Rs 2007 crore, the brokerage said. Gross non performing asset is seen at 3.2 per cent.