Private lender ICICI Bank Ltd on Saturday said its standalone net profit jumped 23.57 per cent year-on-year (YoY) to Rs 10,271.54 crore for the December quarter compared with Rs 8,311.85 crore in the same quarter last year. This was in line with the 19-25 per cent growth that analysts were anticipating ahead of the quarterly results.
Provisions for the quarter came in at Rs 1,049.37 crore, higher than Rs 582.63 crore in the September quarter but lower than the year-ago’s Rs 2,257.44 crore. This too in line with Street expectations.
Net interest income (NII) for the quarter rose 13.4 per cent year-on-year to Rs 18,678 crore from Rs 16,465 crore in the year-ago quarter. NII met Street estimate. Net interest margin (NIM) came in at 4.43 per cent against 4.53 per cent in the September quarter and 4.65 per cent in the year-ago quarter. Gross NPA ratio fell to 2.30 per cent at December 31, 2023 from 2.48 per cent at September 30, 2023.
The private bank said its non-interest income, excluding treasury, increased 19.8 per cent YoY to 5,975 crore from Rs 4,987 crore YoY.
Fee income for the quarterly was up 19.4 per cent to Rs 5,313 crore from Rs 4,448 crore, and that the fees from retail, rural, business banking and SME customers constituted about 79 per cent of total fees in Q3.
ICICI Bank said it registered a treasury gain of Rs 123 crore for the quarter, which was higher than the year-ago’s Rs 36 crore. Provisions, ICICI Bank said, included Rs 627 crore on investments in Alternate Investment Funds as per RBI circular dated December 19, 2023.
Deposits were up 18.7 per cent YoY at Rs 13,32,315 crore at the end of December quarter while the domestic loan portfolio was up 18.8 per cent at Rs 11,14,820 crore.
This is what the bank said in its press release:
Credit growth
Net domestic advances grew 18.8 per cent year-on-year and 3.8 per cent sequentially at December 31, 2023. The retail loan portfolio grew by 21.4 per cent year-on-year and 4.5 per cent sequentially, and comprised 54.3 per cent of the total loan portfolio at December 31, 2023. Including non-fund outstanding, the retail portfolio was 46.4 per cent of the total portfolio at December 31, 2023. The business banking portfolio grew by 31.9 per cent year-on-year and 6.5 per cent sequentially at December 31, 2023. The SME business, comprising borrowers with a turnover of less than Rs 250 crore (US$ 30 million), grew by 27.5 per cent year-on-year and 6.7 per cent sequentially at December 31, 2023.
The rural portfolio grew by 18.2 per cent year-on-year and 4.6 per cent sequentially at December 31, 2023. The domestic corporate portfolio grew by 13.3 per cent year-on-year and 2.9 per cent sequentially at December 31, 2023. Total advances increased by 18.5 per cent year-on-year and 3.9 per cent sequentially to Rs 11,53,771 crore (US$ 138.7 billion) at December 31, 2023. Deposit growth Total period-end deposits increased by 18.7 per cent year-on-year and 2.9 per cent sequentially to Rs 13,32,315 crore (US$ 160.1 billion) at December 31, 2023. Period-end term deposits increased by 31.2 per cent year-on-year and 4.9 per cent sequentially to Rs 8,04,320 crore (US$ 96.7 billion) at December 31, 2023.
Average current account deposits increased by 11.6 per cent year-on-year in Q3-2024. Average savings account deposits increased by 2.8 per cent year-on-year in Q3-2024. With the addition of 471 branches in 9M-2024, the bank had a network of 6,371 branches and 17,037 ATMs and cash recycling machines at December 31, 2023.
Asset quality
The gross NPA ratio declined to 2.30 per cent at December 31, 2023 from 2.48 per cent at September 30, 2023. The net NPA ratio was 0.44 per cent at December 31, 2023 compared to 0.43 per cent at September 30, 2023 and 0.55 per cent at December 31, 2022. The net additions to gross NPAs, excluding write-offs and sale, were Rs 363 crore (US$ 44 million) in Q3-2024 compared to Rs 116 crore (US$ 14 million) in Q2-2024. The gross NPA additions were Rs 5,714 crore (US$ 687 million) in Q3-2024 compared to Rs 4,687 crore (US$ 563 million) in Q2-2024. Recoveries and upgrades of NPAs, excluding writeoffs and sale, were Rs 5,351 crore (US$ 643 million) in Q3-2024 compared to Rs 4,571 crore (US$ 549 million) in Q2-2024. The bank has written off gross NPAs amounting to Rs 1,389 crore (US$ 167 million) in Q3-2024. The provisioning coverage ratio on NPAs was 80.7 per cent at December 31, 2023.
Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to Rs 3,318 crore (US$ 399 million) or 0.3 per cent of total advances at December 31, 2023 from Rs 3,536 crore (US$ 425 million) at September 30, 2023. The bank holds provisions amounting to Rs 1,032 crore(US$ 124 million) against these borrowers under resolution, as of December 31, 2023.
ICICI Bank continues to hold contingency provisions of Rs 13,100 crore (US$ 1.6 billion) at December 31, 2023.
The loan and non-fund based outstanding to performing corporate and SME borrowers rated BB and below was Rs 5,853 crore (US$ 703 million) at December 31, 2023 compared to Rs 4,789 crore (US$ 576 million) at September 30, 2023. The loan and non-fund based outstanding of Rs 5,853 crore (US$ 703 million) at December 31, 2023 includes Rs 661 crore (US$ 79 million) to borrowers under resolution.
Capital adequacy
Including profits for the nine months ended December 31, 2023, the bank’s total capital adequacy ratio at December 31, 2023 was 16.70 per cent and CET-1 ratio was 16.03 per cent compared to the minimum regulatory requirements of 11.70 per cent and 8.20 per cent respectively.
Also read: ICICI Bank Q3 results preview: Profit may rise 19-25%, NII 12%; margins may fall QoQ
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