Home Business ICICI Bank Q1 Results: Better results than expected; Profit up 40%, improving asset quality

ICICI Bank Q1 Results: Better results than expected; Profit up 40%, improving asset quality

by Trend News
4 minutes read
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The country’s second-largest bank in the private sector, ICICI Bank has presented the results of the June quarter. The profit has increased by about 39.7% in this quarter. The bank’s profit in the June quarter last year was Rs 6,905 crore, which has increased to Rs 9,648 crore in this quarter. The profit was estimated to be Rs 9,222 crore in Bloomberg’s analyst poll.

The interest income (NII) of the bank has also increased year-on-year from Rs 13,210 crore to Rs 18,226 crore. It saw a jump of 38% on an annual basis. Other income also saw an increase of 16%. This was recorded at Rs 5,435 crore.

ICICI Bank Q1 (FY24) Results

  • Profit up from Rs 6,905 crore to Rs 9,648 crore  (YoY)
  • Interest Income (NII) increased from Rs 13,210 cr to Rs 18,226 cr  (YoY)
  • Gross NPAs declined from 2.81% to 2.76%  (QoQ)
  • Net NPAs stable at 0.48% without change  (QoQ)

How was the asset quality?

Improvement has also been seen in the asset quality of the bank on a quarterly basis. Gross NPA of the bank has improved by 5 basis points. Gross NPA has come down from 2.81% to 2.76% in this quarter. At the same time, Net NPA remains stable at 0.48% without any change. The bank’s provisioning in the June quarter has increased by 13% year-on-year to Rs 1,292 crore.

Business Direction

Total advances saw a growth of 18.1%. This increased to Rs 10.57 lakh crore. The retail loan portfolio grew by 21.9% on an annual basis, while it showed a growth of 4.5% on a quarter-on-quarter basis. The share of retail loans in the total loan portfolio stood at 54.3%.

During this, a boom was also seen in bank deposits. These increased by 17.9% to reach Rs 12.38 lakh crore.

‘NIM to remain at FY23 level’

During the bank’s media conference call, Executive Director Sandeep Batra said, ‘The recovery in the corporate portfolio seems to be normalizing in this quarter. There has been some increase in the slippage of the Kisan Credit Card portfolio, but it will also come back to the normal level in the coming times. We are comfortable on the asset quality front.

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He said, ‘The decline in NIM ie Net Interest Margin on a quarter-on-quarter basis is due to the re-pricing of retail deposits. We knew about it. We expect the net interest margin to remain at the level of FY23.

On the absence of the corporate head in the bank, Sandeep Batra said that the bank wants to retain the existing structure of senior management. At present, there are two executive directors. One for business and the other for the corporate center. It is important for us to ensure that the structure remains efficient.

On the first Friday of results, ICICI Bank’s stock closed at 997 with a gain of 0.14% on NSE.

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