ICICI Bank Q3 profit up 34%; Yes Bank profit drops 81% to Rs 51.5 cr
ICICI Bank Ltd announced a net profit of Rs 8,312 crore for Q3FY23, a 34.2% YoY growth, driven by a 21.4% increase in domestic loan book and stable net interest margin (NIM). On the other hand, Yes Bank Q3FY23 profit dropped 81% to ₹51.52 crore YoY.
ICICI Bank reported a strong Q3 performance, with its net interest income (NII) rising 34.6% to Rs 16,465 crore from the same quarter last year. This exceeded the expectations of analysts, who had predicted a growth of 28% YoY to Rs 15,639 crore.
Additionally, the bank’s domestic loan book saw a 21.4% increase, driven by loans to small businesses and retail. Business banking loans, specifically those to small informal businesses and rural businesses, grew the fastest at 37.9% YoY.
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“There is a lot happening in the overall economy. From our perspective, when we assess the corporate portfolio, it has to fall within our risk framework,” said Sandeep Batra, executive director at ICICI, in a press conference.
Batra stated that the bank has adopted more stringent risk norms for corporate loans in order to be more cautious when giving out loans. “We are confident about our book. This is with keeping in mind the overall macro environment in growth and inflation. The objective is to strengthen the balance sheet,” he added.
Meanwhile, Yes Bank, based in Mumbai, reported its Q3FY23 earnings on Saturday. Despite the bank posting a PAT of ₹51.52 crore in Q3FY23, which is a significant decline of 80.66% compared to ₹266.43 crore in the same quarter last year and a drop of 66.28% compared to ₹152.82 crore in the previous quarter, it highlighted that the bank’s gross NPA reached its lowest level since Q3 of FY19. This was thanks to the transfer of stressed assets to asset reconstruction company JC Flowers.
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In addition, the value of gross NPA decreased to ₹3,903.68 crore in Q3FY23, as compared to ₹28,654.49 crore in the same quarter of the previous fiscal year and ₹27,419.11 crore in Q2FY23.
“During the quarter, the Bank successfully closed two deals which are strategic and transformational in this new journey of the Bank. The successful Capital Raise has aided in significant expansion in our Capital Base, and post full consummation, our CETI Ratio will reach an extremely comfortable level. Moreover, with successful transfer of stressed Assets to the JC Flowers ARC, the GNPA and NNPA Ratios have now declined to 2% and 1% respectively which is the lowest since Q3FY19.” Said Prashant Kumar, MD & CEO.
Kumar reported that the bank’s operational performance has improved with an increase in disbursements across segments and highest operating profit in the last eight quarters.
