ICICI Bank Reports 24% Jump in Q3 Profit; Provisions Fall

ICICI Bank, one of India’s largest private sector lenders, has reported a significant increase in its net profit for the third quarter of the fiscal year 2023-24. The bank’s standalone net profit rose by 23.5% to Rs 10,272 crore compared to the same period last year.

The bank’s net interest income (NII) also showed a positive growth of 13.4% year-on-year, reaching Rs 18,678 crore in the December quarter. This strong performance was in line with market expectations and reflects the bank’s solid financial position.

Provisions for the quarter stood at Rs 1,049.37 crore, which was lower than the previous year and in line with industry predictions. The bank’s gross NPA ratio improved to 2.30% in December compared to the previous quarter, indicating better asset quality.

ICICI Bank’s strong results can be attributed to the growth in its retail loan portfolio, which increased by 21.4% YoY. The bank’s fee income also saw a significant surge of 19.4% to Rs 5,313 crore, with retail, rural, business banking, and SME customers contributing to 79% of the total fees in Q3.

The bank’s capital adequacy ratios remained healthy, with a total capital adequacy ratio of 16.70% and CET-1 ratio of 16.03%. These figures were well above the regulatory requirements, showcasing the bank’s strong capital position.

ICICI Bank’s performance highlights its resilience in a challenging economic environment. The bank’s focus on retail lending, along with prudent risk management practices, has helped it maintain a robust financial position and deliver consistent profits to its shareholders.