India’s second largest private lender ICICI Bank on July 27 posted its quarterly earnings for the April to June 2024 period in which its net interest margin (NIM) declined marginally to 4.36%. This compares to 4.40% NIM in the March 2024 ended quarter and 4.78% in the corresponding June 2023 ended quarter.
ICICI Bank’s net interest income (NII) rose 7.3% year-on-year to ₹19,552.9 crore, largely in line with CNBC-TV18 poll of analysts that projected NII of ₹19579.8 crore for the first quarter of 2024-25 fiscal.
The lender’s net profit for the quarter under review rose 14.6% year-on-year and came in at ₹11,059.1 core, beating the poll estimate of ₹10,563.7 crore
In the June ended quarter, ICICI Bank’s net domestic advances grew by 15.9% year-on-year and 3.3% sequentially. The retail loan portfolio grew by 17.1% year-on-year and 2.4% sequentially, and comprised 54.4% of the total loan portfolio at June 30, 2024.
The company’s gross non-profit assets (NPA) declined marginally to 2.15% at ₹28,718.6 crore at the end of the first quarter of FY25. This compares to 2.16% at ₹27,961.7 crore in the preceding quarter.
The net NPA also rose slightly on a sequential basis to 0.43% at ₹5,684.8 crore from 0.42% at ₹5,377.8 crore in the March 2024 ended quarter.
ICICI Banks’ deposits grew 15% year-on-year and 0.9% quarter-on-quarter to ₹14.26 lakh crore. Its advances stood at ₹12.23 lakh crore at the end of the quarter under review, up 15.66% YoY and 3.27% QoQ. The private lender saw its operating profit at ₹16,024.8 crore, up 13.3 YoY and 6.6% QoQ.
Provisions, on the other hand, saw a massive jump of 85.4% sequentially and 3.1% year-on-year to ₹1,332.2 crore. The slippages came in at ₹5,916 crore versus ₹5,139 crore, a jump of 15.1%.
Analysts had earlier pointed out that Q1 is typically a weaker quarter for lenders, and ICICI Bank was expected to see a rise in provisions on a sequential basis. Morgan Stanley had forecast credit costs to increase by 45 basis points year-on-year and 21 basis points sequentially.
