ICICI Bank's Q3 results: Net profit surges 15% to ₹11,792cr
What's the story
India's second-largest private sector lender, ICICI Bank, has reported a massive 14.8% YoY jump in its standalone profit after tax for the third quarter. The bank's net profit surged to ₹11,792 crore in the December quarter. At the same time, the bank also saw a 9.1% YoY increase in its net interest income (NII) which stood at ₹20,371 crore during the period.
Financial indicators
Net interest margin and NPA ratio
ICICI Bank's net interest margin for the third quarter of FY25 stood at 4.25%, marginally lower than the previous quarter's 4.27% and much lower than the 4.43% reported in Q3 of FY24. The bank also kept its net NPA ratio steady at 0.42%. As of 2024-end, its provisioning coverage ratio on non-performing loans was 78.2%.
Business expansion
Bank reports growth in deposits and advances
ICICI Bank's total period-end deposits grew 14.1% YoY to ₹15,20,309 crore. Average current account deposits also increased 13.1% YoY and 4.5% sequentially. Meanwhile, the bank recorded a 15.1% YoY growth in net domestic advances in the quarter under review. The retail loan portfolio, which makes up over half of the total loan portfolio at 52.4%, also grew 10.5% YoY and 1.4% sequentially during the period.
Financial health
Asset quality and capital adequacy
ICICI Bank's gross NPA ratio improved marginally in Q3, falling to 1.96% from 1.97% in the last quarter. The bank also reported gross NPA additions of ₹6,085 crore during the quarter. At the end of December, ICICI Bank's total capital adequacy ratio was an impressive 16.60%, well above the minimum regulatory requirement of 11.70%.