ICICI Bank: Business Model, Earnings, Promoter Details and Shareholding Pattern

ICICI Bank’s Business Model

ICICI Bank operates as a full-service financial institution, catering to retail, small and medium enterprises (SMEs), and corporate customers. Its business model is built on a combination of traditional banking services and modern digital innovations, ensuring a broad revenue base and operational efficiency.

1. Revenue Streams

ICICI Bank generates income through multiple channels:

• Interest Income: The core of its revenue comes from lending activities, including retail loans (home loans, personal loans, auto loans), SME financing, and corporate loans. A significant portion of its loan portfolio is floating-rate, allowing the bank to adjust interest rates in response to market conditions.
• Fee-Based Income: This includes income from transaction services, wealth management, credit cards, and third-party product distribution (e.g., insurance and mutual funds).
• Treasury Operations: The bank earns from investments in government securities, foreign exchange operations, and trading activities.
• Digital Services: With a growing emphasis on digital banking, ICICI Bank leverages its mobile app, internet banking, and payment solutions to generate fees and reduce operational costs.

2. Customer Segments

• Retail Banking: ICICI Bank serves millions of individual customers with savings accounts, fixed deposits, loans, and credit cards. Its retail loan book, which constitutes over 50% of its advances, is a key growth driver.
• SME and Business Banking: The bank supports small businesses with working capital loans, trade finance, and cash management services.
• Corporate Banking: Large corporations benefit from project financing, syndicated loans, and treasury solutions.
• International Operations: Though a smaller segment, ICICI Bank has a presence in markets like the UK, Canada, and the Middle East, focusing on trade finance and NRI (Non-Resident Indian) services.

3. Digital Transformation

ICICI Bank has heavily invested in technology to enhance customer experience and operational efficiency. Its mobile banking app, iMobile Pay, allows users to perform transactions, invest, and even access loans digitally. The bank also uses AI and data analytics for credit assessment, fraud detection, and personalized offerings. This digital push has helped maintain a competitive edge in a market increasingly dominated by fintech players.

4. Cost Management

The bank maintains a cost-to-income ratio in the 40% range, reflecting a balance between growth investments and operational efficiency. Its extensive branch network (over 5,000 branches) and ATM infrastructure (over 15,000 ATMs) are complemented by a robust digital platform, reducing dependency on physical infrastructure.

5. Risk Management

ICICI Bank focuses on maintaining asset quality through stringent credit evaluation processes. Its Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) ratios are closely monitored, with provisions made to cushion against potential defaults.

This diversified and tech-driven business model positions ICICI Bank as a resilient player in India’s competitive banking sector.

Q3 FY25 Earnings: Financial Performance Overview

ICICI Bank’s Q3 FY25 earnings (covering October to December 2024) provide a snapshot of its financial health and operational performance. While exact figures for Q3 FY25 may not be fully available as of April 5, 2025, projections and trends can be inferred from prior quarters, analyst estimates, and preliminary reports.

1. Profitability

In Q2 FY25 (July-September 2024), ICICI Bank reported a consolidated net profit of ₹11,746 crore, up 14.5% year-on-year (YoY). Analysts expected Q3 FY25 to show continued growth, with profit estimates ranging between ₹10,500 crore and ₹11,000 crore, driven by steady loan growth and stable margins. However, margin compression due to rising funding costs could temper this growth compared to Q2.

2. Loan Growth

ICICI Bank’s loan portfolio has historically grown at a healthy pace. In Q2 FY25, advances grew by 15.2% YoY to ₹12.3 lakh crore, with retail loans (53-55% of the book) leading the charge at 24-25% growth. SME and business banking also contributed significantly. For Q3 FY25, loan growth is likely to remain in the 14-16% range, supported by festive season demand and economic recovery.

3. Deposits

Deposits in Q2 FY25 stood at ₹14.5 lakh crore, up 16.8% YoY, with the Current Account Savings Account (CASA) ratio at 39.4%. Rising interest rates may have pushed depositors toward term deposits, potentially lowering the CASA ratio slightly in Q3 FY25. Management has indicated that deposit growth is not a constraint, though the cost of funds could rise as older, cheaper deposits reprice.

4. Asset Quality

Asset quality improved in Q2 FY25, with GNPA dropping to 1.97% (from 2.48% in Q2 FY24) and NNPA at 0.43%. Q3 FY25 is expected to maintain this trend, though fresh slippages (e.g., ₹60-65 billion in Q2) could slightly elevate NPA additions. Provisions are likely to remain adequate, reflecting a cautious approach.

5. Net Interest Margin (NIM)

NIM in Q2 FY25 was 4.27%, down from 4.53% in Q2 FY24 due to higher funding costs. For Q3 FY25, NIM is projected to hover between 4.2% and 4.3%, as the bank balances loan yields (around 8.6-8.8%) against rising deposit costs.

6. Key Observations

• Retail and SME segments continue to drive growth, while the overseas loan portfolio (2-3% of total advances) has shrunk by over 20% YoY.
• Fee income growth (10-12% YoY) supports profitability amid margin pressures.
• Operating expenses may rise due to tech investments and branch expansion, though the cost-to-income ratio should stay manageable.

Overall, Q3 FY25 likely reflects steady performance, with challenges like funding costs offset by robust loan demand and digital efficiencies.