 "ICICI Bank Q2FY25 results: Net profit rises 14.5% to Rs 11,746 crore")
ICICI Bank, country’s second largest private sector lender, on Saturday reported a 14.5 per cent year-on-year (Y-o-Y) increase in net profit at Rs 11,746 crore in the July – September quarter of financial year 2025 (Q2FY25), aided by healthy growth in non-interest income, fee income, and treasury gains. Analysts at Bloomberg had estimated a net profit of Rs 10,952 crore.
Sequentially, net profit of the lender was up 6.21 per cent.
It reported 9.5 per cent Y-o-Y growth in net interest income (NII) in Q2FY25 at Rs 20,048 crore on the back of robust growth in advances. Net interest margin – a measure of profitability of banks – of the lender was down 9 basis points in Q2FY25 at 4.27 per cent, compared to 4.36 per cent in Q1FY25, and 4.53 per cent in Q2FY24. The bank expects net interest margin (NIM) to remain broadly stable till the turn of the interest rate cycle, said Sandeep Batra, Executive Director, ICICI Bank.
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Additionally, the lender’s non-interest income increased approximately 11 per cent Y-o-Y to Rs 6,496 crore in Q2FY25. Fee income grew by 13.3 per cent Y-o-Y to Rs 5,894 crore, while treasury gains amounted to Rs 680 crore, a significant improvement from a treasury loss of Rs 85 crore in the same quarter last year.
Asset quality of the lender improved, with gross non-performing (NPA) ratio declining to 1.97 per cent in Q2FY25, compared to 2.15 per cent in Q1FY25, and 2.48 per cent in Q2FY24. Similarly, net NPA ratios declined to 0.42 per cent, compared to 0.43 per cent in the previous quarter, and 0.43 per cent in the corresponding period a year ago.
Gross slippages in the quarter stood at Rs 5,073 crore, compared to Rs 5,916 crore in Q1FY25. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,319 crore in Q2FY25, compared Rs 3,292 crore in Q1-2025. Meanwhile, the bank has written-off gross NPAs amounting to Rs 3,336 crore in the quarter.
Provisions of the lender were down sequentially at Rs 1,233 crore. The bank continues to hold contingency provision of Rs 13,100 crore at September 30, 2024.
The lender reported an advances growth of 15.7 per cent Y-o-Y and 4.6 per cent sequentially to Rs 12.43 trillion, with the retail loan portfolio growing at 14.2 per cent Y-o-Y and 2.9 per cent sequentially.
The business banking portfolio grew by 30 per cent Y-o-Y and 10.7 per cent sequentially during this period. Meanwhile, the corporate portfolio grew by 11.8 per cent Y-o-Y and 4.9 per cent sequentially.
Deposits, too, reported a healthy growth of 15.6 per cent Y-o-Y and 5 per cent sequentially to Rs 14.97 trillion at the end of Q2FY25. Period-end term deposits increased by 15.9 per cent Y-o-Y and 5.5 per cent sequentially to Rs 8.89 trillion during this period.