 "ICICI Bank")
The net profit of private lender ICICI Bank rose by 17.4 per cent to Rs 10,708 crore in the fourth quarter of financial year 2023-24 (Q4FY24) on the back of growth in net interest income and advances.
Sequentially, the net profit grew 4.24 per cent from Rs 10,272 crore in the third quarter of financial year 2023-24.
The net interest income (NII) of the lender increased by 8.1 per cent to Rs 17,667 crore from Rs 19,093 crore. However, the net interest margin (NIM) slipped to 4.40 per cent in the reporting quarter as compared to 4.90 per cent in the year ago period. Sequentially, the NIM was at 4.43 per cent in the third quarter of FY24.
The non-interest income, excluding treasury, increased by 15.7 per cent year-on-year (Y-o-Y) to Rs 5,930 crore in the quarter under review from Rs 5,127 crore in the year ago period. The fee income grew by 12.5 per cent Y-o-Y to Rs 5,436 crore from Rs 4,830 crore during the period.
The provisions (excluding tax provision) of the lender declined to Rs 718 crore from Rs 1,619 crore in Q3FY24.
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In the December quarter of FY24, the lender had made Alternate Investment Provision (AIF) provisions worth Rs 630 crore. Out of which Rs 100 crore has been written back. “We did a write back of around Rs 100 crore from our provisions to our AIFs investments. Currently, there is no proposal to invest in AIF,” said Anindya Banerjee, CFO, ICICI Bank.
The total advances grew by 16.8 per cent Y-o-Y to Rs 11.84 trillion in Q4FY24. The retail loan portfolio which accounted for 54.9 per cent of the portfolio grew by 19.4 per cent during the time period to Rs 6,662.61 crore. The personal loans grew by 32.5 per cent Y-o-Y to Rs 1,166.77 crore.
Meanwhile, according to Sandeep Bakhshi, CEO, ICICI Bank, the outstanding to NBFCs and HFCs which account for 6.5 per cent of the total loans stands at around Rs 77,000 crore in the March quarter of FY24 as compared to Rs 82,000 crore in the year-ago period.
The deposits of the lender increased by 19.6 per cent Y-o-Y to Rs 14.13 trillion as on March 31, 2024. The term deposits increased by 27.7 per cent Y-o-Y to Rs 8.17 trillion. Average current account deposits of the lender increased by 13 per cent and savings account deposits increased by 4.6 per cent.
The asset quality of the improved gross Non-Performing Assets (GNPA) ratio declined to 2.16 per cent at March 31, 2024 from 2.30 per cent at December 31, 2023. The net NPA ratio was at 0.42 per cent on March 31, 2024 as compared to 0.44 per cent on December 31, 2023.
Recoveries and upgrades of NPAs, excluding write-offs and sales, were Rs 3,918 crore as compared to Rs 5,351 crore in the quarter ended in December 31, 2023.
The company plans to raise funds by issuing debt securities including by way of non-convertible debentures (NCDs) in domestic markets upto Rs 25,000 crore and issuances of bonds, notes or offshore certificate of deposits in overseas markets upto $1.50 billion for a period of one year, from the date of passing of resolution by the board.
The board has also authorised a buyback of debt securities within the limits. The bank’s total capital adequacy ratio at the end of March 31, 2024 was 16.33 per cent and CET-1 ratio was at 15.60 per cent.
Also, the lender has recommended a dividend of Rs 10 per share which is subject to the approval by the shareholders at the ensuing Annual General Meeting (AGM).
