ICICI Bank on Saturday reported a splendid set of numbers, posting a 15% year-on-year rise in the net profit to Rs 11,792 crore for Q3FY25, supported by strong growth in advances and interest income. The country’s second-largest private bank surpassed Street expectations as Bloomberg estimates had pegged the profit at Rs 11,495 crore.
The net interest income of the bank, the difference between interest earned and paid, rose 9% to Rs 20,371 crore in the December quarter of the current financial year from Rs 18,678 crore in the same quarter of the previous year. Net interest margins of the lender stood at 4.25% in the third quarter, down from 4.27% in the second quarter of the current financial year and 4.43% in the same quarter a year ago.
The bank expects NIMs to remain stable in the near term but the margins may come under pressure after the rate cut by the Reserve Bank of India.
“Once the rate cut cycle starts, there will be some impact on margins as loans will get repriced faster than deposits, which will impact margins,” Sandeep Batra, executive director, ICICI Bank said in the post-earnings call.
Total advances increased by 13.9% year-on-year and 2.9% sequentially to ₹13.14 lakh crore as on December 31, 2024. The retail loan portfolio grew by 10.5% year-on-year and 1.4% sequentially and comprised 52.4% of the total loan portfolio.
The business banking portfolio grew by 31.9% year-on-year and 6.4% sequentially as on December 31, 2024. The domestic corporate portfolio grew by 13.2% year-on-year and 4.3% sequentially.
Deposits grew over 14% on-year to Rs 15.20 lakh crore. Current account savings account (CASA) deposits accounted for 39% of total deposits. The asset quality of the bank witnessed a slight improvement with gross non-performing assets (NPAs) declining to 1.96% as on December 31, 2024 compared to 1.97% on September 30, 2024. The net NPA ratio was 0.42% as on December 31, 2024 compared to 0.42% on September 30, 2024. The gross NPA additions were Rs 6,085 crore in the December quarter compared to Rs 5,073 crore in the September quarter.
Besides, the ICICI Bank board approved re-appointment of Sandeep Batra and Rakesh Jha as executive director of the bank for two years subject to RBI’s approval, the bank said in a regulatory filing to the stock exchanges.