ICICI Bank Ltd. reported fourth-quarter standalone net profit surged 30% year-on-year to ₹9,122 crore backed by healthy growth in retail loans, an improvement in asset quality and a 40.2% jump in net interest income (NII) to ₹17,667 crore.
“There was all round growth in loan portfolio and we are following a risk calibrated approach,” executive director Sandeep Batra told participants on an earnings conference call.
Stating that loan portfolio of all the segments including housing grew during the quarter despite the rise in interest rates, Mr. Batra said the bank’s retail loan portfolio grew by 22.7% year-on-year and 5.4% sequentially, and comprised 54.7% of the total loan portfolio as on March 31.
The Indian economy has continued to remain resilient and financial stability has been maintained while inflation has moderated, he added.
The lender’s net interest margin improved to 4.90% in the March quarter from 4.00% in the year-earlier period.
Fee income grew by 10.6% to ₹4,830 crore in the quarter. Provisions (excluding provision for tax) increased by 51.5% to ₹1,619 crore in Q4. Provisions included contingency provision of ₹1,600 crore made on a prudent basis, Mr Batra said.
The bank suffered a treasury loss of ₹40 crore in Q4 compared with a gain of ₹129 crore in the year-earlier period.
The business banking portfolio grew by 34.9% and the SME business, comprising borrowers with a turnover of less than ₹250 crore grew by 19.2%. The domestic corporate portfolio grew by 21.2%, he said.
Total advances increased by 18.7% during the quarter to ₹10,19,638 crore. Total period-end deposits increased by 10.9% to ₹11,80,841 crore.
Bad loans shrink
The gross NPA ratio declined to 2.81% at March 31, 2023, from 3.07% as on December 31, 2022, Mr. Batra said.
The net non-performing assets declined by 25.9% to ₹5,155 crore. The net NPA ratio slid to 0.48%, from 0.76% at March 31, 2022.
He said the net addition from gross NPAs, excluding write-offs and sale, was ₹14 crore in Q4, compared with ₹1,119 crore in the preceding quarter.
The gross NPA additions in the last quarter were ₹4,297 crore, compared with ₹5,723 crore in Q3.
The bank’s total capital adequacy ratio at March 31 was 18.34% and Tier-1 capital adequacy was 17.60% compared with the minimum regulatory requirements of 11.70% and 9.70%, respectively.
The board has recommended a dividend of ₹8 per share.
The fourth-quarter consolidated profit after tax increased by 27.6% to ₹9,853 crore.
Consolidated assets grew by 11.7% ₹19,58,490 crore as on March 31.
The lender’s standalone profit after tax for the financial year ended March 31, 2023, grew by 36.7% to ₹31,896 crore.
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