On January 20, ICICI Bank showcased a commendable performance in its financial results for Q3 of the current fiscal year. The bank reported a net profit of Rs 10,271.54 crore, marking a significant 23.5% rise compared to the corresponding period last year.
Key financial highlights:
Gross non-performing asset (NPA) reduction:
The bank’s gross NPA showed a noteworthy improvement, standing at 2.30%, down from 3.07% in the same quarter of the previous year.
Net interest income (NII) surge:
ICICI Bank’s net interest income witnessed a robust YoY growth of 34.6%, reaching Rs 16,465 crore in Q3-2023 from Rs 12,236 crore in Q3-2022.
Enhanced net interest margin (NIM):
The net interest margin for Q3-2023 was reported at 4.65%, showcasing a substantial increase from 3.96% in Q3-2022 and 4.31% in the quarter ended September 30, 2022.
Strong capital adequacy:
As of December 31, 2023, ICICI Bank’s total capital adequacy ratio was a robust 16.70%, exceeding the minimum regulatory requirement of 11.70%. The Common Equity Tier-1 (CET-1) ratio was reported at 16.03%, surpassing the regulatory threshold of 8.20%.
NPA management and provisioning:
Net additions to gross NPAs, excluding write-offs and sales, amounted to Rs 363 crore in Q3-2024 compared to Rs 116 crore in Q2-2024. The bank’s gross NPA additions were Rs 5,714 crore in Q3-2024 compared to Rs 4,687 crore in Q2-2024. Notably, recoveries and upgrades of NPAs reached Rs 5,351 crore in Q3-2024 compared to Rs 4,571 crore in Q2-2024, demonstrating effective resolution strategies and prudent management
Provisioning coverage ratio:
The provisioning coverage ratio on NPAs was robust at 80.7% as of December 31, 2023, highlighting the bank’s commitment to maintaining a healthy balance between provisions and asset quality.
ICICI Bank’s Q3 performance highlights a remarkable growth trajectory, with substantial profit increments, improved asset quality, and strong capital adequacy.
