ICICI Bank Reports 16% Year-on-Year Profit Surge to ₹14,805 Crore in Q1, Driven by 13% Rise in NII and Expanding Margins.

ICICI Bank has demonstrated robust financial performance for the June quarter, reporting a standalone net profit of Rs 14,805 crore, marking a 15.9% year-on-year increase from Rs 12,768 crore. This growth can be attributed to a 12.7% rise in net interest income (NII), which reached Rs 24,384 crore, alongside a slight expansion in net interest margin to 4.36%. Core operating profit also witnessed a healthy increase of 15.6% to Rs 20,235 crore, and significantly, excluding dividends from subsidiaries, this profit measure displayed an accelerated growth of 18.3%. Furthermore, the bank’s non-interest income, particularly its fee income, surged 23.5%, reflecting a strong contribution from retail and business banking segments, which together accounted for approximately 72% of total fees.

The bank’s loan book has continued its upward trajectory, with advances expanding by 19.6% year-on-year, culminating at Rs 16.31 lakh crore at the end of June. Specifically, business-banking loans grew by 28.2%, while the rural portfolio expanded by an impressive 35.4%. To support this growth, deposits also recorded a considerable increase, rising 14% year-on-year to Rs 18.34 lakh crore. The bank benefitted from an improved average current and savings account ratio of 38.1%, which is crucial for enhancing its funding cost profile moving forward.

ICICI Bank has also made notable strides in asset quality, evidenced by a reduction in the gross non-performing assets (NPA) ratio to 1.38% from 1.67% a year earlier. Although there was a slight increase in the net NPA ratio sequentially from 0.33% to 0.35%, the overall trend remains positive with gross NPA additions declining to Rs 5,552 crore. Additionally, recoveries and upgrades stood strong at Rs 2,845 crore, indicating effective management of stressed assets. The bank maintains a healthy capital position, with a total capital adequacy ratio of 16.84% and a common equity Tier-1 ratio of 16.19%. The addition of 97 branches this quarter, bringing the network to 7,608 branches, further solidifies its market presence and growth prospects.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)