Bernstein has maintained its Outperform rating on ICICI Bank, with a target price of Rs 1,440, citing its stellar performance in Q3 FY25. The bank achieved a return on assets (RoA) of 2.4%, unchanged from both the previous quarter and the same period last year. This resulted in a 14% YoY EPS growth, driven by cost control and pristine asset quality.
Despite a marginal decline in NIM (-2 bps QoQ) and a slight sequential decline in net operating income, the bank’s cost controls (5% YoY growth in opex) and robust asset quality offset these challenges. Bernstein noted that while loan and deposit growth at 14% YoY was slightly below consensus estimates, CASA growth of 16.6% YoY highlighted the bank’s ability to attract low-cost deposits. This performance underscores ICICI Bank’s operational strength in a challenging environment.
ICICI Bank Q3 Results
ICICI Bank delivered a strong performance in Q3 FY25, with net profit rising by 15% year-on-year (YoY) to ₹11,792.42 crore, compared to ₹10,271.54 crore in Q3 FY24. This growth was driven by robust net interest income (NII), which stood at ₹20,370 crore, an increase of 9% from ₹18,678 crore in the corresponding quarter of the previous year. The growth in NII was supported by higher loan disbursements and stable margins.
The bank’s asset quality improved further during the quarter, with its gross non-performing assets (GNPA) ratio declining to 1.96% as of December 31, 2024, from 1.97% in the previous quarter (Q2 FY25). The net non-performing assets (NNPA) ratio also remained stable at 0.42%, reflecting better credit management and stronger recoveries.
Provisions (excluding tax) for the quarter stood at ₹1,226.65 crore against Rs 1,049 crore in Q3 FY24 but slightly lower than Rs 1,226 crore in Q2FY25.
