ICICI Bank reported third quarter standalone net profit for the period ended December 31, 2023 grew by 23.6% year-on-year (YoY) to ₹10,272 crore on improved asset quality and increase in Net Interest Income (NII).

NII during the quarter increased by 13.4% YoY to ₹18,678 crore, Executive Director Sandeep Batra said in a conference call. 

However, net interest margin was lower at 4.43% compared with 4.65% in the year-earlier period on account of higher deposit costs.

Despite thi,s the bank said it would continue to lend in a risk calibrated manner. 
“From risk point of view India is well positioned and we will continue to look at opportunities from all segments to serve our customers,” Mr. Batra said.

The bank’s provisions (excluding provision for tax) stood at ₹1,050 crore compared with ₹2,257 crore a year-earlier.

The provisions for the quarter included ₹627 crore on investments in Alternate Investment Funds as per the recent RBI circular, Mr Batra said:

During the quarter the bank’s net domestic advances grew by 18.8% YoY. The retail loan portfolio grew by 21.4% YoY. While the business banking portfolio grew by 31.9% YoY, the SME business, comprising borrowers with a turnover of less than ₹250 crore grew by 27.5% YoY.

The rural portfolio grew by 18.2% YoY and the domestic corporate portfolio grew by 13.3% YoY. Total advances increased by 18.5% to ₹11,53,771 crore.  Total period-end deposits increased by 18.7% to ₹13,32,315 crore.

The bank’s gross NPA ratio declined to 2.30% at December 31, 2023 from 2.48% in the previous quarter. The net NPA ratio was 0.44% compared with 0.55% at the year ago period.  The net additions to gross NPAs, excluding write-offs and sale, were ₹363 crore compared to ₹116 crore in the previous quarter.

The gross NPA additions were ₹5,714 crore compared with ₹4,687 crore in the previous quarter.

Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹5,351 crore compared to ₹4,571 crore in the previous quarter. The bank has written off gross NPAs amounting to ₹1,389 crore and the provisioning coverage ratio on NPAs was 80.7%.

Excluding NPAs, the total fund based outstanding to all borrowers under resolution
as per the various extant regulations/guidelines declined to ₹3,318 crore or 0.3% of total advances from ₹3,536 crore in the previous quarter. The bank holds provisions amounting to ₹1,032 crore against these borrowers under resolution, as of December 31, 2023.

In addition, the bank continues to hold contingency provisions of ₹13,100 crore at December 31, 2023, Mr. Batra said.

The consolidated profit after tax increased by 25.7% YoY to ₹11,053 crore. Consolidated assets grew by 17% YoY to ₹22,08,018 crore.