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ICICI Bank's Q1 profits soared 15% YoY to ₹11,059 crore, driven by a 15.7% surge in total advances and a 17.1% growth in the retail loan portfolio.
The bank expanded its network with 64 new branches, and saw a 17.8% increase in average deposit growth.
Despite a slight increase in net NPA ratio, the bank's capital adequacy remained strong at 16.63%.
Revenue growth was boosted by a 13.4% rise in fee income and a significant jump in treasury gains.

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The bank reported an average deposit growth of 17.8% YoY to ₹13,78,658 crore

ICICI Bank's Q1 profit surges 15% YoY to ₹11,059 crore

By Dwaipayan Roy

Jul 27, 2024

03:47 pm

What's the story

ICICI Bank, a prominent private sector lender, has announced a 14.6% year-on-year (YoY) increase in its standalone profit after tax (PAT) for the June quarter, amounting to ₹11,059 crore. The bank's net interest income (NII) also experienced a 7.3% YoY rise to ₹19,553 crore. The net interest margin was reported at 4.36% in Q1, slightly lower than the previous quarter's figure of 4.40%.

Business expansion

Significant growth in loan portfolio

ICICI Bank's total advances surged by 15.7% YoY and 3.3% sequentially to ₹12,23,154 crore. The retail loan portfolio saw a growth of 17.1% YoY and 2.4% sequentially, accounting for 54.4% of the total loan portfolio. Additionally, the business banking portfolio witnessed a substantial increase of 35.6% YoY and 8.9% sequentially.

Network expansion

Bank sees growth in deposits

ICICI Bank expanded its network by adding 64 branches during Q1, bringing the total to 6,587 branches and 17,102 ATMs & cash recycling machines by the end of June. The bank reported an average deposit growth of 17.8% YoY to ₹13,78,658 crore at the end of the June quarter. The average current account and savings account (CASA) ratio stood at 39.6%.

Financial health

ICICI Bank's NPA ratios and capital adequacy

ICICI Bank's gross non-performing assets (NPA) ratio was 2.15% at the end of June 2024, slightly lower than the 2.16% reported at the end of March 2024. The net NPA ratio was marginally higher at 0.43% in June 2024, compared to 0.42% in March. The bank's total capital adequacy ratio, including Q1 profits, stood at a robust 16.63%, with the CET-1 ratio being reported as 15.92%.

Revenue growth

Fee income and treasury gains increase in Q1

The bank reported a 13.4% YoY increase in fee income to ₹5,490 crore in Q1, with fees from retail, rural, business banking and SME customers making up about 78% of total fees. The bank also saw a significant rise in treasury gains to ₹613 crore in Q1 from ₹252 crore in the same quarter of the previous fiscal year, due to realized and mark-to-market gains in equity shares and security receipts.