In the latest financial quarter, ICICI Bank delivered robust Q2 2023-24 results, surpassing analyst expectations. The Mumbai-based banking giant reported a 36 percent year-on-year growth in net profit, reaching a staggering INR 10,261 crore. This performance exceeded analysts’ estimates of INR 9,422 crore, reflecting a 25 percent YoY growth. The standout results were driven by a surge in net interest income (NII) and a notable reduction in bad loan provisions.
ICICI Bank’s standalone profit witnessed an impressive 35.7 percent year-on-year growth, with earnings soaring to INR 10,261 crore during the quarter. This substantial increase marked a significant improvement from INR 7,557.84 crore in the same period last year, as disclosed in the bank’s BSE filing.
Analysts had anticipated a 22 percent YoY increase in ICICI Bank’s NII to INR 18,080 crore in Q2 FY 2023-24. This upswing was attributed to robust loan growth and a decrease in provisions for loan losses, which were expected to decline by 6 percent YoY to INR 1,550 crore.
The bank’s total income for the quarter also exhibited a remarkable upturn, reaching INR 40,697 crore, compared to INR 31,088 crore in the corresponding period the previous year. Interest income climbed to INR 34,920 crore from INR 26,033 crore in the September 2022 quarter.
ICICI Bank’s NII registered a substantial 24 percent year-on-year growth, reaching INR 18,308 crore during the quarter, compared to INR 14,787 crore in the same quarter the previous year. Additionally, the bank’s net interest margin improved to 4.53 percent, up from 4.31 percent during the same period a year ago.
The bank’s asset quality experienced a positive shift as gross non-performing assets (NPAs) decreased to 2.48 percent of gross advances by the end of the September quarter, down from 2.76 percent a year ago. Similarly, net NPAs, or bad loans, saw an improvement, declining to 0.43 percent from 0.61 percent in the year-ago period.
However, it’s worth noting that ICICI Bank’s capital adequacy ratio decreased slightly to 16 percent, down from 16.93 percent at the end of September 2022. On a consolidated basis, the bank’s profit increased by a remarkable 36 percent, reaching INR 10,896 crore in the quarter, compared to INR 8,007 crore in the previous year.
Despite these strong financial results, shares of ICICI Bank experienced a minor dip, closing 0.28 percent lower at INR 932.45 apiece on the BSE on October 20.
