ICICI Bank Ltd.’s standalone second quarter net profit grew by 14.5% year-on-year (YoY) to ₹11,746 crore from ₹10,261 crore on improvement in asset quality. Lower slippages and healthy recoveries helped, according to analysts.
Net interest income (NII) increased by 9.5% YoY to ₹20,048 crore from ₹18,308 crore. The net interest margin was 4.27% in the second quarter ended September 30, 2024 compared with 4.53% in the year-earlier period.
Provisions (excluding provision for tax) were ₹1,233 crore compared with ₹583 crore in the same period last year.
The bank’s net domestic advances during the quarter grew by 15.7% YoY and 4.6%. The retail loan portfolio grew by 14.2% YoY and comprised 53.0% of the total loan portfolio on September 30, 2024. The unsecured loan portfolio primarily comprises the personal loan and the credit card portfolio is about 14% of the total loan portfolio, the bank said.
Total period-end deposits increased by 15.7% YoY to ₹ 14,97,761 crore. Period-end term deposits increased by 15.9% YoY to ₹8,89,038 crore. Gross non-performing assets (NPA) reduced to ₹27,121 crore from ₹29,837 crore in the year-earlier period. Net NPA, however, increased to ₹5,685 crore as compared with ₹5,046 crore a year earlier. The gross NPA ratio was 1.97% compared with 2.48% a year earlier. The net NPA ratio was 0.42% compared with 0.43% in the same period last year.
The gross NPA additions were ₹5,073 crore and recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹3,319 crore for the quarter. The net additions to gross NPAs, excluding write-offs and sale, were ₹ 1,754 crore and the bank wrote-off gross NPAs amounting to ₹3,336 crore in the quarter.
The provisioning coverage ratio on non- performing loans was 78.5% as of September 30, 2024.
Excluding NPAs, the total fund-based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹2,546 crore, or 0.2% of total advances as of September 30, 2024.
The bank held provisions amounting to ₹ 812 crore against these borrowers under resolution, as of September 30, 2024. In addition, the bank continues to hold contingency provisions of ₹ 13,100 crore at the end of the quarter. Including profits for the six months ended September 30, 2024, the bank’s total capital adequacy ratio at September 30, 2024 was 16.66% and CET- 1 ratio was 15.96% compared with the minimum regulatory requirements of 11.70% and 8.20% respectively.
The consolidated profit after tax increased by 18.8% YoY to ₹ 12,948 crore from ₹10,896 crore in the year-earlier period.
Published – October 26, 2024 08:02 pm IST
