ICICI Bank Q3 Results: Profit Surges Past Estimates, Driven by NII Growth
ICICI Bank has announced its Q3 FY2025 results, revealing a robust 15% year-on-year increase in profit after tax, reaching ₹11,792 crore. This performance surpasses analysts' expectations. The bank's strong results are primarily attributed to a 9% rise in net interest income (NII) and stable asset quality, despite a slight decrease in net interest margin (NIM).
Provisions and contingencies for the quarter saw a 17% year-on-year increase, totaling ₹1,227 crore. The bank's net interest income grew to ₹20,371 crore, a 9% rise compared to the previous year. However, the net interest margin (NIM) experienced a slight dip, falling to 4.25% in the December quarter, down from 4.27% in the previous quarter and 4.43% a year ago.
Key Highlights of ICICI Bank's Q3 Performance
- Profit After Tax: Rose 15% YoY to ₹11,792 crore
- Net Interest Income: Increased 9% YoY to ₹20,371 crore
- Provisions and Contingencies: Increased 17% YoY to ₹1,227 crore
- Net Interest Margin (NIM): Slightly decreased to 4.25%
Asset Quality and NPA Management
The bank has maintained stable asset quality during the quarter ending December. The gross non-performing assets (NPA) ratio decreased to 1.96% at the end of December, compared to 1.97% in the previous quarter and 2.30% a year ago. The net NPA remained flat at 0.42% sequentially but was lower than 0.44% a year ago.
Gross NPA additions for the December quarter were ₹6,085 crore, compared to ₹5,073 crore in the September quarter. This increase is partly due to higher NPA additions from the Kisan Credit Card portfolio in the first and third quarters of the financial year. Retail and rural loans accounted for ₹5,300 crore of the gross NPA additions, while corporate and business banking accounted for the remainder.
Recoveries and upgrades of NPAs, excluding write-offs and sales, were ₹3,392 crore during the third quarter, up from ₹3,319 crore in the previous quarter. The bank wrote off gross NPAs amounting to ₹2,011 crore.
Loan Growth and Deposit Performance
Healthy loan growth continued to support the bank's performance. Domestic gross advances grew by 14% year-on-year to ₹13.14 lakh crore. Net domestic advances saw a growth of over 15% year-on-year during the quarter. The retail loan portfolio grew by nearly 11% year-on-year, while unsecured personal loans grew by 8.8% year-on-year. The business banking portfolio grew by 33% year-on-year, the rural portfolio rose over 12%, and the domestic corporate portfolio increased by 13%.
Deposits grew over 14% year-on-year, reaching ₹15.20 lakh crore.
The bank's focus remains on growing its retail and rural loan portfolio while closely monitoring its asset quality. They have also shifted their focus to better-rated corporate loan portfolios, with A- and above-rated corporate loan books accounting for 76% of their overall loans in that category as of December.
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