Meanwhile, Kotak Mahindra Bank exceeded analyst estimates to report a 67% jump in standalone net profit at Rs 3,452 crore for the June quarter. On a consolidated level, the profit grew 51% to Rs 4,150 crore. Another private lender, Yes Bank, said its net profit rose 10.3% to Rs 342 crore.
ICICI Bank’s jump in profits followed an 18.1% year-on-year growth in total advances to Rs 10,57,583 crore on June 30, 2023. Despite the first quarter being slow for loan growth, the bank’s advances book has grown 4% sequentially.
The bank’s deposits grew 17.9% year-on-year and 4.9% sequentially to Rs 12,38,737 crore. The share of fixed deposits increased, rising 25.8% year-on-year and 9.8% sequentially to Rs 7,02,511 crore.
“We expect the repricing of deposits to continue in the next few quarters and overall decline in net interest margin was expected because of the increase in deposit rates,” said Sandeep Batra, executive director, ICICI Bank.
Due to business growth and lending rate increases, ICICI Bank’s net interest income (NII) rose by 38% YoY to Rs 18,227 crore in Q1-2024 from Rs 13,210 crore in Q1-2023. The net interest margin was 4.78% in Q1-2024 compared to 4.01% in Q1-2023 and 4.9% in Q4-2023.
Batra said the bank’s unsecured loan portfolio consisted largely of personal loans and credit cards and was around 12% of its loan book. “The core principle on which we have built our unsecured book has been on the return of capital. About 85% of the book comprises salaried customers, and most work with large corporates, MNCs and government, and we are comfortable with the quality,” he said. Batra said the bank held Rs 13,100 crore of contingency provision, 1.2% of total advances.
ICICI Bank’s gross NPA ratio improved by 2.76% on June 30, 2023, compared to 2.81% on March 31, 2023. The net NPA ratio was steady at 0.48% on June 30, 2023, compared to 0.48% on March 31, 2023, and 0.7% on June 30, 2022. The net addition to gross NPAs, excluding write-offs and sales, was Rs 1,807 crore in Q1-2024 compared to Rs 14 crore in Q4-2023. The gross NPA additions were Rs 5,318 crore in Q1-2024 compared to Rs 4,297 crore in Q4-2023.
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