Mumbai: ICICI Bank, one of the leading private lenders, demonstrated a strong year-on-year growth, registering a-record quarterly standalone profit surge 14.5% reaching ₹11,746 crore in the quarter ended September, 2024. The net interest income experienced a notable 9.5% increase, reaching ₹20,048 crore during the period. The capital position of the bank continued to be strong with a CET-1 ratio of 15.96% and a total capital adequacy ratio of 16.66% as on September 30, 2024. The bank’s cost to income ratio is at 38.6% which is the best in last seven quarters showing optimal operating efficiency.
Sandeep Bakhshi, MD & CEO, ICICI Bank said, “We are laying strong emphasis on strengthening our operational resilience for seamless delivery of services to customers. We will remain focused on maintaining a strong balance sheet with prudent provisioning and healthy levels of capital.”
In Q2 FY25, ICICI Bank maintained a positive trajectory in managing its asset quality. The gross NPA ratio was 1.97% as of September 2024, compared to 2.48% as of September 2023. This was the best asset quality performance by the bank in the last 10 years. Notably, the net NPA ratio also slipped to a mark of 0.42% in this quarter compared to 0.43% in the previous quarter, showcasing the bank's robust risk management measures.
Excluding NPAs, the total fund based outstanding to all borrowers declined to 0.2% of total advances at September 30, 2024. The provisioning coverage ratio on NPAs was 78.5% at September 30, 2024. Annualised slippages ratio is at a 15 quarter low to 1.59% reduced from 1.93% in the previous quarter, this indicates a very healthy asset quality trend.
Credit Growth:
In terms of loan growth, the bank's overall loan portfolio grew by 15% year-on-year to ₹12,772 crore in Q2 FY25. The retail loan portfolio, which constitutes 53% of the total loan portfolio, grew by 14.2% year-on-year. The biggest share of retail loans is held by mortgage loans with 60.4% with an average ticket size of ₹36 lakh. The vehicle loan which is 13.6% of the retail portfolio disbursed by the bank, comprises 87% new vehicle loans and 13% old vehicle loans. The personal loan portfolio grew by 17.7%, and the credit card portfolio grew by 8% year-on-year.
The net domestic loan portfolio also grew by 15.7% year-on-year and 4.6% sequentially this quarter. The business banking portfolio grew by 30% year-on-year, now comprises of all borrowers with a turnover of upto ₹ 750 crore, which was earlier reflected in the reported SME and business banking portfolios, rural business credit forming part of the rural portfolio, dealer funding forming part of the retail portfolio and lending to mid-corporates forming part of the corporate portfolio. Similarly, the rural portfolio grew by 16.5%, and the domestic corporate portfolio grew by 11.8% year-on-year as of September 30, 2024.
Deposit Growth:
ICICI Bank's deposit portfolio continued to show healthy growth. Total deposits stood at ₹14,97,761 crore as of September 30, 2024, which increased by 15.7% from the previous year. Term deposits constituting the 59.4% of total deposits increased by 15.9% year-over-year as well as by 5.5% sequentially. Average deposits for the quarter grew 15.6% year-over-year, with average term deposits and CASA deposits growing at 19.3% and 10.4% year-over-year, respectively. The average current account and savings account (CASA) ratio was at 38.9% in Q2 FY25, which shows the bank's strategic emphasis on building a stable low-cost deposit base.
“Our focus on customer 360 degree, extensive franchise and collaboration within the organisation, backed by our focus on enhancing delivery systems and simplifying processes will enable us to deliver holistic solutions to customers in a seamless manner and grow market share across key segments.” Bakhshi added.
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