ICICI Bank reported a 23.6% year-on-year rise in net profit to Rs 10,272 crore for the quarter ended December, mainly on the back of lower provisions and stable asset quality.

In the year-ago period, the country’s second-largest private sector lender had reported a net profit of Rs 8,311.8 crore. 

Net interest income

The bank’s net interest income (NII) grew 13.4% YoY to Rs 18,678 crore in Q3 FY24, from Rs 16,465 crore in the corresponding quarter of the previous fiscal. 

NIM

Net interest margin (NIM) fell to 4.43% in the quarter ended December 2023, compared to 4.53% a quarter ago and 4.65% a year ago. The decline was due to a rise in the cost of term deposits. 

Loan book

The bank’s loan book grew 18.37% YoY to Rs 11.53 lakh crore in the fiscal third quarter. 

Retail loans grew by 21.4% YoY to Rs 6.43 lakh crore and comprised 54.3% of the lender’s total loan portfolio as of December 31, 2023. Within this segment, personal loans and credit cards rose by 37% and 40%, respectively.  Mortgages grew 16% YoY.

Business loans grew 32% YoY and the rural loan book rose by 18%.

Deposits

Deposits grew 18.7% YoY to Rs 13.32 lakh crore at the end of the December 2023 quarter. 

The share of low-cost CASA (current account savings account) deposits declined to 39.4% in the total mix, from 44.6% a year ago and 40.8% a quarter ago. The CASA deposits grew 3.8% YoY to Rs 5.3 lakh crore.

Bad loans

The bank’s asset quality improved, with gross non-performing assets (NPAs) declining to 2.3% in the December quarter from 3.07% a year ago.

During the quarter, the lender wrote off gross NPAs worth Rs 1,389 crore. The gross NPA additions stood at Rs 5,714 crore in Q3, compared to Rs 4,687 crore in the preceding quarter.

Net NPAs declined to 0.44% from 0.55% a year ago and 0.43% a quarter ago.

The provision coverage ratio (PCR), excluding write-offs, stood at 80.7% in December 2023, down from 82% a year ago. During the quarter, the bank made a provision of Rs 627 crore for the exposure to Alternative Investment Funds (AIFs).