Comments
ICICI Bank has announced that its net profit during Q4 FY23 rose 30 per cent year-on-year (YoY) to ₹9,122 crore, its highest ever quarterly profit. For FY23, the profit after tax was 37 per cent higher at ₹31,896 crore.
Total advances increased 19 per cent YoY to ₹10.2-lakh-crore, led by 21 per cent growth in domestic loans. Retail loans grew 23 per cent, comprising 55 per cent of total loans. Business banking portfolio was up 35 per cent YoY, while SME loans grew 19 per cent.
Net interest income (NII) increased by 40 per cent to ₹17,667 crore in Q4. Net interest margin (NIM) for the quarter was 4.90 per cent compared with 4.00 per cent a year ago and 4.65 per cent a quarter ago.
In the post earnings call, Executive Director Sandeep Batra said that yield on advances rose to 9.75 per cent in Q4 from 9.13 per cent in Q3, and cost of deposits increased to 3.98 per cent from 3.65 per cent. For FY23, yield on advances was 8.94 per cent and cost of deposits was 3.66 per cent.
Given the loan book reprices faster than the deposit portfolio, NIMs for the bank are likely near the peak and will have a downward bias through FY24, he said, adding that nearly 50 per cent of the bank’s loan book is linked to the repo rate.
Deposits were 11 per cent higher YoY at ₹11.8-lakh-crore as of March 31. Average CASA ratio for the quarter was 44 per cent.
Batra said that the bank is comfortable with the deposit growth, and while the space is competitive and deposit accretion will remain an area of focus, deposit growth will not be a “constraint for the bank to grow its assets in a risk calibrated manner”.
ICICI Bank made contingency provisions of ₹1,600 crore in Q4, taking total provisions for the quarter to ₹1,619 crore, up 52 per cent YoY. Total contingency provisions stood at ₹13,100 crore as at the end of March. Provision coverage ratio was at 83 per cent.
The contingency provisions are based on a quarterly review of the macro situation, Batra said.
Slippages for the quarter were ₹14 crore, much lower than ₹1,119 crore the previous quarter. Recoveries and upgrades stood at ₹4,283 crore, and the bank wrote off bad loans worth ₹1,158 crore.
Gross NPA ratio declined to 2.8 per cent from 3.1 per cent a quarter ago. The net NPA ratio at 0.5 per cent was also better than 0.6 per cent a quarter ago and 0.8 per cent a year ago.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.