ICICI Bank Showcases Solid Profit Surge Amid Strategic Adjustments

ICICI Bank reported a consolidated profit increase of 18.8% to Rs 12,948 crore. The lender's net profit rose 14.5% standalone. Despite margin pressures, core net interest income climbed by 9.5%. Robust strategic moves boosted non-interest income, but provisions doubled due to reduced recoveries.

ICICI Bank unveiled a notable 18.8% rise in its consolidated profit after tax to Rs 12,948 crore for the latest quarter, significantly up from the previous year. On a standalone basis, the financial giant's net profit for July to September grew by 14.5% to Rs 11,746 crore, against a backdrop of increased standalone revenue of Rs 47,714 crore, compared to Rs 40,697 crore the prior year.

Although ICICI Bank's core net interest income rose by 9.5% to Rs 20,048 crore, driven by a substantial 15.7% increase in its domestic loan portfolio, the bank faced a marginal squeeze, with its net interest margin dropping slightly from 4.53% to 4.27%. Executive Director Sandeep Batra projected a stable NIM moving forward, highlighting a 10.8% growth in non-interest income, predominantly bolstered by a 13.3% surge in fee income.

The bank's provisions climbed over twofold to Rs 1,233 crore in contrast to Rs 583 crore a year earlier, attributed to diminished recoveries. Batra noted that this reserve equates to merely 0.4% of the bank's portfolio. Meanwhile, deposits increased by 15.7%, aligning well with loan demands, while asset quality challenges emerged mainly from retail and rural sectors. The bank's gross non-performing assets ratio saw improvement, dropping to 1.97% as of September 30, 2024.

(With inputs from agencies.)