ICICI Bank Q3 results beat estimates: Profit jumps 34% to Rs 8,312 crore, NII up 35%

The bank’s net interest income (NII) increased by 34.6% YoY to Rs 16,465 crore in Q3. ICICI Bank’s net interest margin increased to 4.65% in Q3 compared to 3.96% in the year-ago period and 4.31% in Q2 of the current financial year.

The private sector bank surprised investors on both fronts as an ET Now poll had found that analysts were expecting PAT at Rs 8,000 crore and NII at Rs 15,300 crore.

The lender’s net NPA ratio declined to 0.55% in December-end from 0.61% at the end of the September quarter. The provisioning coverage ratio on non-performing assets was at 82%.

Its deposits grew by 10.3% YoY to Rs 11,22,049 crore and loan portfolio recorded a growth of 19.7% YoY. Provisions (excluding provision for tax) increased by 12.5% YoY to Rs 2,257 crore in Q3.

“During the quarter, the bank has changed its provisioning norms on nonperforming assets to make them more conservative. This change resulted in higher provisions amounting to Rs 1,196 crore in Q3-2023. Provisions for Q3-2023 also include contingency provision of Rs 1,500 crore made on a prudent basis,” the lender said in an exchange filing.

ICICI Bank’s retail loan portfolio grew by 23.4% YoY and 4.5% sequentially, and comprised 54.3% of the total loan portfolio in Q3. The business banking portfolio grew by 37.9%, SME 25% and rural 12.5%. The average current account and savings account deposits increased by 10.4% year-on-year in Q3.

The bank’s total capital adequacy ratio in Q3 was 18.33% and Tier-1 capital adequacy was 17.58% compared to the minimum regulatory requirements of 11.70% and 9.70%, respectively.

ICICI Bank opened about 300 branches in the first nine months of FY23 and had a network of 5,718 branches and 13,186 ATMs in December-end. The value of the bank’s merchant acquiring transactions through UPI grew by 10.6% sequentially and 78% year-on-year in Q3.

“The bank had a market share of 30.6% by value in electronic toll collections through FASTag in Q3-2023, with a 22.2% year-on-year growth in collections,” it said.

During the quarter, its fee income grew by 3.7% YoY to Rs 4,448 crore. Fees from retail, rural, business banking and SME customers constituted about 78% of total fees in Q3. The bank also declared a treasury gain of Rs 36 crore in Q3 compared to Rs 88 crore in the year-ago period.