ICICI Bank Q3 net jumps 34% to ₹8,312 crore, buoyed by growth in loans, net interest income

ICICI Bank reported third-quarter standalone net profit grew 34.2% year-on-year to ₹8,312 crore backed by a rise in net Interest Income (NII) and growth in its loan portfolio. File
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ICICI Bank reported third-quarter standalone net profit grew 34.2% year-on-year to ₹8,312 crore backed by a rise in net Interest Income (NII) and growth in its loan portfolio.

 The bank’s core operating profit (profit before provisions and tax, excluding treasury income) increased 31.6% to ₹13,235 crore. NII rose 34.6% to ₹16,465 crore. The net interest margin widened to 4.65%, from 3.96% in the year-earlier period.

Overall loan portfolio grew by 19.7% year-on-year, with the domestic loan portfolio expanding by 21.4%.

Provisions (excluding provision for tax) rose 12.5% to ₹2,257 crore. “During the quarter, the bank has changed its provisioning norms on non-performing assets to make them more conservative,” Executive Director Sandeep Batra said on a conference call . “This change resulted in higher provisions amounting to ₹1,196 crore in Q3-2023,” he added.

“Provisions for Q3-2023 also include contingency provision of ₹1,500 crore made on a prudent basis,” he noted.

 The retail loan portfolio grew by 23.4% and comprised 54.3% of the total loan portfolio at December 31, 2022.

Total advances increased by 19.7% year-on-year and 3.8% sequentially to ₹9,74,047 crore.

The bank said the total period-end deposits increased by 10.3% to ₹11,22,049 crore.

ICICI Bank said the gross NPA ratio declined to 3.07% as on December 31, from 3.19% at September 30, 2022, and 4.13% at December 31, 2021. 

The net NPA ratio declined to 0.55%, from 0.85% at December 31, 2021.

During the quarter there were net additions of ₹1,119 crore to gross NPAs.

The gross NPA additions were ₹5,723 crore in Q3. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹4,604 crore in the quarter. 

“The gross NPAs written-off in the quarter were ₹1,162 crore. The provisioning coverage ratio on NPAs was 82.0% at December 31, 2022,” Mr. Batra said.

Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹4,987 crore or 0.5% of total advances at December 31, 2022, from ₹6,713 crore at September 30, 2022, he said.

The bank held contingency provisions of ₹11,500 crore at December 31, 2022.

The consolidated profit after tax increased by 34.5% year-on-year to ₹8,792 crore.