 "ICICI Bank Q1 results: Net profit rises 14.6% to Rs 11,059 cr, NII up 7.3%")
ICICI Bank on Saturday reported a 14.6 per cent year-on-year (Y-o-Y) growth in net profit in the first quarter of the current financial year (Q1FY25), aided by treasury gains despite higher provisions.
The private sector lender’s net profit stood at Rs 11,059 crore for the quarter compared to Rs 9,648 crore in the corresponding period a year ago.
Its net interest income (NII) rose by 7.3 per cent Y-o-Y to Rs 19,553 crore, led by healthy growth in advances. The bank’s net interest margin (NIM) – a measure of profitability for banks – was nearly flat at 4.36 per cent in Q1FY25.
Provisions were up at Rs 1,332 crore in Q1FY25 compared to Rs 1,292 crore in the corresponding period a year ago.
Asset quality of the lender remained stable, with its gross non-performing assets (NPAs) ratio at 2.15 per cent at the end of Q1FY25 compared to 2.16 per cent in Q4FY24, and net NPA ratio at 0.43 per cent.
The gross NPA additions for the quarter stood at Rs 5,916 crore in Q1FY25 compared to Rs 5,139 crore in Q4FY24. Some of the fresh slippages are coming from KCC accounts, the bank management said, adding that their credit costs are well contained and are below the normal levels. Further, recoveries and upgrades of NPAs, excluding write-offs and sale, stood at Rs 3,292 crore in Q1FY25 compared to Rs 3,918 crore in Q4FY24.
The gross NPA additions for the quarter stood at Rs 5,916 crore in Q1FY25 compared to Rs 5,139 crore in Q4FY24. Some of the fresh slippages are coming from KCC accounts, the bank management said, adding that their credit costs are well contained and are below the normal levels. Further, recoveries and upgrades of NPAs, excluding write-offs and sale, stood at Rs 3,292 crore in Q1FY25 compared to Rs 3,918 crore in Q4FY24.
The gross NPA additions for the quarter stood at Rs 5,916 crore in Q1FY25 compared to Rs 5,139 crore in Q4FY24. Recoveries and upgrades of NPAs, excluding write-offs and sale, stood at Rs 3,292 crore in Q1FY25 compared to Rs 3,918 crore in Q4FY24.
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The bank reported a 15.7 per cent Y-o-Y and 3.3 per cent sequential growth in advances at Rs 12.23 trillion in Q1FY25, led by 17.1 per cent Y-o-Y growth in retail portfolio, which is 54.4 per cent of the total loan portfolio, 35.6 per cent Y-o-Y growth in business banking portfolio, 23.5 per cent Y-o-Y growth in SME portfolio, and 16.9 per cent Y-o-Y growth in rural banking portfolio.
Deposits of the bank grew by 15.1 per cent Y-o-Y and 0.9 per cent sequentially to Rs 14.26 trillion in Q1FY25. Period-end term deposits increased by 19.9 per cent Y-o-Y and 3.1 per cent sequentially to Rs 8.42 trillion during the quarter, and average deposits increased by 17.8 per cent Y-o-Y and 3.3 per cent sequentially to Rs 13.78 trillion.
"We would like to grow in a risk calibrated fashion. Clearly, deposits and loans go hand in hand. Our average deposits grew 17.8 per cent Y-o-Y and our loan portfolio grew by 15.7 per cent Y-o-Y. The wholesale deposits in the system have remained sticky and we have seen some banks increasing retail deposits. There is also the dynamics of new liquidity coverage ratio (LCR) guidelines. Our focus will remain on trying to meet the 360 needs of the customers and hopefully it will play out well for us in the future", said Sandeep Batra, Executive Director, ICICI Bank.
Additionally, Batra said, growth in personal loans for the bank has reduced during the quarter (Q1FY25). It is because of the adjustment that we have been doing for some time.
Additionally, Batra said, growth in personal loans for the bank has reduced during the quarter (Q1FY25). It is because of the adjustment that we have been doing for some time.
Commenting on the draft LCR norms by the Reserve Bank of India (RBI), Batra said, (RBI's) concern essentially emanates from the possibility of deposit outflows in a digital banking environment. "Yes, it will have an impact on deposit costs, loan growth, lending rates, and investment yields", he said.