ICICI Bank Reports Dip in Q3 Net Profit
ICICI Bank has announced its financial results for the third quarter of the fiscal year 2025. The bank recorded a net profit of Rs 11,318 crore. This figure represents a 4% decrease compared to the same period last year. In the corresponding quarter of the previous fiscal year, the net profit stood at Rs 11,792 crore.
Net Interest Income Shows Strong Growth
Despite the drop in net profit, the bank's net interest income (NII) displayed robust performance. NII for the quarter reached Rs 20,937 crore. This marks a significant 13% increase from the Rs 18,465 crore reported in Q3 of the last fiscal year. Net interest margin (NIM) for the quarter was 4.43%. This is a slight decline from the 4.53% recorded in the same quarter a year earlier.
Asset Quality and Provisions
The bank's asset quality showed improvement during this period. The gross non-performing assets (NPA) ratio stood at 2.30%. This is lower than the 2.48% reported in the previous quarter. The net NPA ratio was 0.44%, down from 0.48% in the prior quarter. Provisions for the quarter totaled Rs 1,050 crore. This is a decrease from the Rs 1,619 crore set aside in the same quarter last year.
Operating profit for the quarter came in at Rs 16,465 crore. This reflects a 12% increase year-on-year. The bank's total advances grew by 18% to reach Rs 12,64,423 crore. Total deposits increased by 19% to Rs 14,12,660 crore. The current account savings account (CASA) ratio was 37.7% as of December 31, 2024.
Market Reaction and Outlook
Investors and analysts closely watched these results. The decline in net profit was attributed to higher operating expenses and increased tax outgo. However, the strong growth in net interest income provided a positive note. The bank's management expressed confidence in maintaining healthy growth momentum. They highlighted continued focus on digital initiatives and customer-centric services.
ICICI Bank remains one of India's leading private sector banks. The quarterly results are a key indicator of the banking sector's health. The mixed performance with profit dip but income growth reflects broader economic trends. The bank plans to leverage its strong deposit base for future lending activities.
