ICICI Bank, one of India's leading private sector lenders, has delivered a strong performance in the second quarter of the financial year 2023-24, demonstrating resilience and growth across key parameters.
Financial Performance Highlights
The bank reported a 5.2% year-on-year increase in net profit, reaching ₹10,261 crore for the quarter ended September 2023. This growth comes despite the bank setting aside higher provisions compared to the same period last year.
One of the standout achievements was the significant 23.8% surge in net interest income (NII), which climbed to ₹18,308 crore from ₹14,787 crore in the corresponding quarter last year. This impressive growth underscores the bank's strong core banking operations and effective margin management.
Key Operational Metrics
The bank's total advances showed healthy expansion, growing by 18.4% year-on-year to ₹11,15,570 crore. The retail loan portfolio continued to be the primary growth driver, contributing significantly to the overall loan book expansion.
On the deposits front, ICICI Bank reported a 18.8% increase in total deposits, which stood at ₹13,32,315 crore as of September 30, 2023. The current account savings account (CASA) ratio was maintained at 40.6%, reflecting stable low-cost deposit mobilization.
Asset Quality Shows Improvement
In a positive development, the bank's asset quality metrics showed marked improvement. The net non-performing assets (NPA) ratio declined to 0.43% from 0.61% in the same quarter last year, indicating better credit risk management and recovery efforts.
The gross NPA ratio also improved significantly, dropping to 2.48% from 2.76% year-on-year. This improvement in asset quality positions the bank strongly for future growth while reducing credit risk concerns.
Provisions and Capital Adequacy
The bank made total provisions of ₹1,011 crore during the quarter, which included contingency provisions of ₹290 crore. This conservative approach to provisioning reflects the bank's prudent risk management strategy.
ICICI Bank maintained a healthy capital adequacy ratio of 16.00% with Tier-1 capital adequacy of 14.99% as per Basel III norms, providing ample buffer for future business expansion.
Business Segments Performance
The bank's business banking portfolio grew by 31.5% year-on-year, while the SME portfolio expanded by 26.8%. The domestic corporate portfolio also showed robust growth of 17.8%, indicating broad-based recovery across business segments.
The fee income grew by 11.1% year-on-year to ₹5,325 crore, driven by growth in retail fees and transaction banking services.
ICICI Bank's Q2 results demonstrate the institution's ability to maintain growth momentum while strengthening its balance sheet, positioning it well for the upcoming quarters in a dynamic economic environment.
