ICICI Bank stated its March quarter consolidated net profit grew 18.5 per cent to Rs 11,672 crore, helped by decrease provisions. On a standalone foundation, the second largest personal sector lender confirmed a 17.4 per cent growth in its profit after tax at Rs 10,708 crore for the reporting quarter in opposition to Rs 9,122 crore in the year-ago interval.
For fiscal 2023-24, its standalone net profit grew to Rs 40,888 crore from Rs 31,896 crore a yr in the past. The core net curiosity earnings elevated 8.1 per cent to Rs 19,093 crore in the reporting quarter on a 16.8 per cent growth in loans.
However, it was restricted by a compression in net curiosity margin to 4.40 per cent from 4.90 per cent in the year-ago interval. The non-interest earnings, excluding the efficiency of the treasury, got here at Rs 5,930 crore, which is 15.7 per cent increased than the year-ago interval.
The provisions greater than halved to Rs 718 crore for the reporting quarter, as per the alternate submitting by the lender. In occasions of excessive competitors for deposits, the lender managed a deposit growth of 19 per cent.
In feedback that come months after the RBI’s issues on unsecured lending, its government director Sandeep Batra stated it “calibrated” the private mortgage growth down to 32.5 per cent from over 37 per cent earlier whereas the growth in bank card excellent was 35.6 per cent.
Corporate loans grew 10 per cent in FY24 however had been flat in the March quarter from a sequential perspective due to some repayments by some state-run firms, Batra stated.
When requested concerning the high quality of the e-book, he stated the financial institution is snug with the efficiency of such unsecured loans. Batra declined to touch upon any conversations with the RBI on the problem of expertise glitches and outages however added that any spending on the important facet won’t constrained by budgetary limitations.
The financial institution’s tech spending has gone up to 9.4 per cent of the operational bills in FY24 from 5.6 per cent in 2019. Replying to a particular query, Batra stated there may be “nothing material” from the incident of mapping practically 17,000 bank cards to the unsuitable customers.
On the asset high quality entrance, the financial institution reported contemporary slippages of Rs 5,139 crore, of which a majority of Rs 4,900 crore got here from the retail exposures. The gross non-performing property ratio improved to 2.16 per cent from 2.30 per cent in December 2023.
The general provisions greater than halved to Rs 718.49 crore from the Rs 1,619.80 crore in the year-ago interval, which helped in the profit growth. Without spelling out a precise stage, Batra stated the NIMs shall be “range-bound” in the longer term until there may be any shock, and added that the financial institution expects a “shallow” fee minimize by the RBI.
There was additionally a Rs 100 crore write-back in the provisions from the Rs 650 crore put aside in the quarter-ago interval due to the investments in Alternative Investment Funds following an RBI round, which has subsequently been clarified.
It added 623 branches in FY24, taking its general community to over 6,500 branches, and Batra stated it will likely be including an identical variety of branches in FY25 as effectively. The general capital adequacy stood at 16.33 per cent as of March 31, with the CET-1 ratio at 15.60 per cent.
The board has advisable a dividend of Rs 10 per share for FY24, as per an official assertion. Among its subsidiaries, the profit after tax of ICICI Prudential Asset Management Company got here at Rs 529 crore for the quarter in opposition to Rs 385 crore in the year-ago interval, whereas the identical for ICICI Securities grew to Rs 537 crore from Rs 263 crore.
(With inputs from PTI)
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