ICICI Bank Q2 Results: Net profit surges 36% to Rs 10,261 crore; bad loan provisions fall

ICICI BANK

ICICI Bank on October 21 registered 35.7 percent year-on-year growth in standalone profit and a 24 percent rise in net interest income in the July-September quarter of the fiscal year 2023-24 (Q2), with a significant fall in bad loan provisions.

The standalone profit of the Mumbai-based bank jumped to Rs 10,261 crore for the quarter, rising from Rs 7,557.84 crore in the same period last year, the bank said in its BSE filing.

Net profit of Rs 10,261 crore (36 percent year-on-year growth) exceeded analysts' estimates of Rs 9,422 crore in Q2 (25 percent YoY growth).

According to an average estimate of five brokerages, ICICI Bank’s NII (Net Interest Income) was expected to increase 22 percent YoY to Rs 18,080 crore in Q2FY23-24, amid strong pick-up in loan growth, and lower provisions. Loan-loss provisions are expected to drop 6 percent YoY, to Rs 1,550 crore.

The total income in the second quarter of the current fiscal rose to Rs 40,697 crore from Rs 31,088 crore in the same period a year ago, ICICI Bank said in a regulatory filing. Interest earned by the bank improved to Rs 34,920 crore from Rs 26,033 crore in the September 2022 quarter. Interest earned by the bank improved to Rs 34,920 crore from Rs 26,033 crore in the September 2022 quarter.

Its net interest income (NII) increased by 24 per cent year-on-year to Rs 18,308 crore in the quarter against Rs 14,787 crore in the corresponding quarter a year ago. At the same time, the net interest margin rose to 4.53 per cent compared to 4.31 per cent in the same period a year ago. At the same time, the net interest margin rose to 4.53 per cent compared to 4.31 per cent in the same period a year ago.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 2.48 per cent of gross advances at the end of the September quarter from 2.76 per cent a year ago. Similarly, its net NPAs or bad loans declined to 0.43 per cent against 0.61 per cent in the year-ago period. Similarly, its net NPAs or bad loans declined to 0.43 per cent against 0.61 per cent in the year-ago period.

However, the bank's capital adequacy ratio decreased to 16 per cent from 16.93 per cent at the end of September 2022. On a consolidated basis, the bank's profit increased by 36 per cent to Rs 10,896 crore in the quarter from Rs 8,007 crore a year ago. On a consolidated basis, the bank's profit increased by 36 per cent to Rs 10,896 crore in the quarter from Rs 8,007 crore a year ago.

Meanwhile, shares of ICICI Bank closed 0.28 percent lower at Rs 932.45 apiece on BSE on October 20.

(With PTI inputs)