ICICI Bank Q3 profit up 34%

Private sector lender ICICI Bank on Saturday announced a 34% year-on-year increase in its net profit for the three months ended December 31 to Rs 8,312 crore, despite an increase in the provisions.

The bank’s provisions increased 12% y-o-y to Rs 2,257 crore even as the asset quality improved both sequentially and on y-o-y basis. The bank has made its non-performing assets (NPA) provisioning policy more conservative, a statement said. Provisioning coverage ratio on non-performing assets was 82.0% on December 31.

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The lender also saw a 31% increase in its pre-provisioning operating profit (PPOP) to Rs 13,271 crore. The bank’s non-interest income, excluding treasury income, increased by 1.8% y-o-y to Rs 4,987 crore led by fee income. Fees from retail, rural, business banking and SME customers contributed about 78% of total fees in Q3FY23. The bank also saw a treasury gain of Rs 36 crore during the quarter.

Net interest income (NII) improved 35% y-o-y to Rs 16,465 crore, while net interest margin (NIM) expanded by 69 bps to 4.65% as of December 31.

The bank’s total advances increased by 19.7% to Rs 9.7 trillion while deposits grew by 10.3% to Rs 11 trillion as of December 31.

The retail loan portfolio grew by 23.4% to Rs 5.3 trillion, consisting of 54.3% of the total loan portfolio, while corporate advances grew by 18% to Rs 2.3 trillion in Q3FY23. The bank’s term deposits increased by 14.2% Rs 6.1 trillion while its CASA ratio was dipped marginally to 44.6% as of December 31 from 44.9% a year ago.

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On the asset quality front, the bank’s gross NPA ratio fell 106 bps y-o-y to 3.07% as of December 31 while its net NPA ratio fell 30 bps to 0.55%.

The bank’s recoveries and upgrades of NPAs were at Rs 4,604 crore in Q3FY23, higher compared to Rs 3,761 crore in the previous quarter.

The bank’s total capital adequacy ratio was 18.33% as of December 31 with tier-1 capital at 17.58% compared to the minimum regulatory requirements of 11.70% and 9.70%, respectively.