Jefferies maintained its Buy rating on ICICI Bank with a target price of Rs 1,600, citing continued strong performance. The bank reported a profit of Rs 11,800 crore in Q3 FY25, up 15% YoY and 6% ahead of estimates. Deposit growth stood at 14%, supported by a 17% rise in CASA, which contributed to a 14% YoY loan growth.
The domestic loan-to-deposit ratio (LDR) remained at a comfortable 85%, while the high liquidity coverage ratio (LCR) of 122% provided additional stability. Jefferies highlighted the resilience in asset quality, reflecting broader trends observed in the banking sector. The bank’s ability to maintain healthy growth in deposits and loans while safeguarding its asset quality has been a key driver of its consistent outperformance.
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.
