ICICI Bank reported a 36% rise in net profit to Rs 10,261 crore for the quarter ended September 2023 on higher core income and lower provisions. 

In the year-ago period, the private lender’s net profit stood at Rs 7,558 crore.

Net Interest Income

Net interest income (NII) for the fiscal second quarter ended September rose to Rs 18,308 crore, up 23.8% from the year-ago period. Other income for the quarter rose to Rs 5,777 crore, up 14.3% year-on-year.

Net Interest Margin

Net interest margin (NIM) fell by 25 basis points on a sequential basis to 4.53%. This was higher than 4.31% a year ago but lower than 4.78% a quarter ago.

"We expect the NIM reduction to moderate in the coming quarters," ICICI Bank executive director Sandeep Batra told reporters over a conference call on Saturday.

Provisions

Provisions fell to Rs 583 crore from Rs 1,645 crore a year ago and Rs 1,292.4 crore a quarter ago.

The provision coverage ratio on non-performing assets (NPAs) stood at 82.6% as of 30 September.

Asset Quality

ICICI Bank’s asset quality improved during the quarter, with gross non-performing asset (NPA) ratio up 28 basis points quarter-on-quarter to 2.48%. This was lower than 3.19% a year ago and 2.76% a quarter ago.

Net NPA ratio also improved by 5 bps sequentially to 0.43%. In the year-ago period, net NPA ratio was at 0.61% and 0.48% a quarter ago.

The gross NPA additions were Rs 4,687 crore in Q2 compared to Rs 5,318 crore in the preceding quarter. 

Recoveries and upgrades of NPAs, excluding write-offs and sale, stood at Rs 4,571 crore compared to Rs 3,511 crore a quarter ago.

Loan Book

The lender's domestic loan portfolio grew 19.3% from a year earlier to Rs 10.74 lakh crore as of 30 September. On a sequential basis, the net domestic advances grew 4.8% sequentially. 

The retail loan portfolio grew 21.4% year-on-year and 5.5% sequentially, and comprised 54.3% of the total loan portfolio.

Deposit Growth

The bank’s total deposits rose to Rs 12.94 lakh crore, up 19%. Period-end term deposits increased 31.8% year-on-year and 9.2% sequentially to Rs 7.67 lakh crore.

Loan Book

Domestic loan portfolio grew 19.3% from a year earlier to Rs 10.74 lakh crore as of 30 September. On a sequential basis, the net domestic advances grew 4.8% sequentially. 

The retail loan portfolio grew 21.4% year-on-year and 5.5% sequentially, and comprised 54.3% of the total loan portfolio.

Deposit Growth

The bank’s total deposits rose to Rs 12.94 lakh crore, up 19%. Period-end term deposits increased 31.8% year-on-year and 9.2% sequentially to Rs 7.67 lakh crore.