CLSA has reiterated its Outperform rating on ICICI Bank, with a target price of Rs 1,600, following another strong quarterly performance. The bank’s pre-provision operating profit (PPOP) exceeded estimates by 6%, while its core profit after tax (adjusted for provision reversals) also beat projections by 6%. This robust performance came despite a balance sheet growth of 14% YoY, which was below expectations.
Asset quality remained strong, with a stable gross non-performing loan (GNPL) ratio and a lower slippage ratio on a YoY basis. ICICI Bank demonstrated steady net interest margins (NIM), sequential improvement in operating expenses, and healthy deposit growth of 14% YoY. The bank’s CASA ratio also remained stable, further solidifying its performance.
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.
