ICICI Bank Q4 results: Net profit beats estimates, rises by 30% to Rs 9,122 cr

ICICI Bank, the second largest private bank in India, on Saturday reported nearly 30 percent year-on-year (YoY) jump in net profit to Rs 9,121.9 crore in the quarter ended March 2023.

The bank’s net interest income (NII) rose 40.2 percent to Rs 17,667 crore from Rs 12,605 crore in the corresponding quarter last year. ICICI Bank’s domestic loan book registered a healthy growth of 20.5 percent, driven mainly by loans to business banking and retail. Business banking loans, which are a credit to small informal businesses and rural businesses, grew by 34.9 percent year-on-year, followed by 21 percent growth in loans to corporates. Retail loan portfolio of the bank grew by 22.7 percent year-on-year. Additionally, loans to small and medium enterprises (SME) rose by 19.2 percent from the same period in 2022.

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“The business banking and SME franchise continues to grow on the back of digital offerings and platforms like InstaBIZ along with the Bank’s extensive branch network,” ICICI Bank said in a release.

The bank’s board has recommended a dividend of Rs 8 per share in line with applicable guidelines. “The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course,” said the bank.

ICICI Bank’s provisions surged by 51.5 percent year-on-year to Rs 1,619 crore for the March quarter. The bank has a contingency provision of Rs 1,600 crore.

The bank reported a deposit growth rate of 10.9 percent during January and March, far slower than credit growth. The net interest margin for the bank was 4.90 percent in Q4 2023 compared to 4.00 percent in Q4 2022, and 4.65 percent in Q3 2023.

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ICICI Bank’s gross bad loans as a percentage of its loan book came down to 2.81 percent from 3.60 percent a year ago. The net non-performing assets (NPAs) declined by 25.9% year-on-year and 8.8% sequentially to Rs 5,155 crore (US$ 627 million) for the quarter ended March 31, 2023. Recoveries and upgrades were Rs 4,283 crore in the quarter ended March.