ICICI Bank reported second quarter standalone net profit grew by 35.8% year-on-year to ₹10,261 crore from ₹7,558 crore the yr earlier due to enchancment in asset high quality and wholesome progress in Net Interest Income (NII).
Core working profit grew by 21.7% year-on-year to ₹14,314 crore from ₹11,765 crore a yr earlier; excluding dividend earnings from subsidiaries/associates, core working profit grew by 22.9% year-on-year within the quarter ended September 30,2023, the financial institution stated in a submitting with exchanges.
NII elevated by 23.8% year-on-year to ₹18,308 crore from ₹14,787 crore within the yr earlier.
The financial institution stated its net curiosity margin was 4.53% within the second quarter in contrast with 4.31% in the identical interval the sooner yr.
Provisions (excluding provision for tax) had been ₹583 crore in contrast with ₹1,644 crore a yr earlier.
During the quarter, the financial institution’s net home advances grew by 19.3% year-on-year. The retail mortgage portfolio grew by 21.4% year-on-year and comprised 54.3% of the entire mortgage portfolio as of September 30, 2023.
Including non-fund excellent, the retail portfolio was 46% of the entire portfolio as of September 30, 2023. The enterprise banking portfolio grew by 30.3% year-on-year.
The SME enterprise, comprising debtors with a turnover of lower than ₹250 crore, grew by 29.4% year-on-year. The rural portfolio grew by 17.3% year-on-year. The home company portfolio grew by 15.3% year-on-year. Total advances elevated by 18.3% year-on-year to ₹ 11,10,542 crore as of September 30, 2023.
Total period-end deposits elevated by 18.8% year-on-year to ₹12,94,742 crore.
The gross NPA ratio declined to 2.48% as of September 30, 2023 from 2.76% on June 30, 2023.
The net NPA ratio declined to 0.43% as of September 30, 2023 from 0.48% on June 30, 2023 and 0.61% on September 30, 2022.
The net addition to gross NPAs, excluding write-offs and sale, had been ₹116 crore in Q2 2024 in contrast with ₹1,807 crore in Q1 2024.
The gross NPA additions had been ₹4,687 crore in Q2 2024 as in contrast to ₹5,318 crore in Q1-2024.
Recoveries and upgrades of NPAs, excluding write-offs and sale, had been ₹4,571 crore in contrast with ₹3,511 crore in Q1 2024.
The financial institution has written off gross NPAs amounting to ₹1,922 crore in Q2 2024, Sandeep Batra, government director, ICICI Bank stated in a convention name.
The provision protection ratio on NPAs was 82.6% as of September 30, 2023, he stated.
Asked if the financial institution had seen any stress in private loans, he answered within the detrimental. He stated the financial institution would carry on lending to any phase based mostly on its danger calibrated technique.
“We are quite happy with the [personal loan and credit card advance] portfolio. [in case of any build up] we ensure it is written off pretty fast,” Mr. Batra stated whereas commenting on any doubtless hood of stress in private mortgage portfolio.
He stated although danger is increase [in the industry] within the decrease ticket sized [sub ₹50,000] private mortgage phase, ICICI Bank has no presence in that phase. “We continuously monitor the portfolio and loans are given to customers with secured income,” he added.
Excluding NPAs, the entire fund based mostly excellent to all debtors beneath decision as per the varied extant laws/pointers declined to ₹3,536 crore or 0.3% of whole advances as of September 30, 2023 from ₹3,946 crore on June 30, 2023, he added.
The financial institution holds provisions amounting to ₹1,107 crore in opposition to these debtors beneath decision. In addition, the financial institution continues to maintain contingency provisions of ₹13,100 crore as of September 30, 2023.
The financial institution’s whole capital adequacy ratio as of September 30, 2023 was 17.6% and Tier-1 capital adequacy was 16.9% in contrast to the minimal regulatory necessities of 11.70% and 9.70%, respectively.
The consolidated profit after tax elevated by 36.1% year-on-year to ₹10,896 crore in Q2 2024 from ₹8,007 crore in Q2 2023.
