ICICI Bank, the country’s second-largest private lender, continued to report robust numbers following a healthy growth in loans and an improved net interest income (NII). 

The bank reported a 30% year-on-year jump in net profit to Rs 9,121.9 crore for the fiscal fourth-quarter ended March 2023. Despite higher provisions, the growth beat market estimates.

NII, the difference between interest earned and paid, rose 40.2% to Rs 17,667 crore for the March quarter from Rs 12,605 crore a year ago.

Net interest margin widened to 4.9% from 4% in Q4 FY22 and 4.65% in Q3 FY23.

Non-interest income, excluding treasury income, grew 11.3% YoY to Rs 5,127 crore. The bank incurred a treasury loss of Rs 40 crore during the quarter as against a gain of Rs 129 crore in Q4 FY22.

The provisions, excluding those made for taxes, increased by 51.5% to Rs 1,619 crore in the March quarter from Rs 1,069 crore in the corresponding period of the previous year. Provisions during the quarter included contingency provisions of Rs 1,600 crore made on a prudent basis, the bank said in a statement.

The bank’s gross non-performing assets (NPA) declined to 2.81% on 31 March 2023, from 3.07% in the preceding quarter and 3.6% a year ago. The bank wrote off gross NPAs amounting to Rs 1,158 crore during the quarter. 

The bank’s capital adequacy was at 18.34% as on 31 March 2023 and tier 1 capital adequacy was 17.6% compared with regulatory requirements of 11.7% and 9.7%, respectively.

Total advances grew 18.7% YoY to Rs 1,019,638 crore. The retail loan portfolio rose 22.7% YoY and 5.4% sequentially. It comprised 54.7% of the bank’s total loan portfolio as on 31 March 2023. Including non-fund outstanding, the retail portfolio was 45.7% of the total loan portfolio.

The business banking portfolio rose by 34.9% and the SME portfolio by 19.2%.

Deposits grew 10.9% for the quarter ended March 2023. While current account deposits grew 9.3% YoY, savings account deposits and term deposits rose by 7.5% and 17.1%, respectively.

"At this point in time, we are very comfortable with our deposit growth. I do not think deposit growth will be a constraint to our ability to grow our assets in a risk-calibrated manner," ICICI Bank executive director Sandeep Batra told reporters on a conference call.

For the full financial year 2022-23, the bank’s net profit climbed 36.7% to Rs 31,896 crore from Rs 23,339 crore the previous year. 

The board of the bank has recommended a dividend of Rs 8 per share.