ICICI Bank clocks another steady quarter, expects stable unsecured retail portfolio ahead

As India’s second-largest private lender, ICICI Bank, reported another steady quarter (Q3FY25), the management highlighted the importance of maintaining stable asset quality. During its analyst conference call, the bank underscored that it expects to sustain stable asset quality even in the unsecured retail segment in the coming quarters, despite other lenders facing higher slippages in their micro-finance portfolios.

"On the unsecured side, we have observed an increase in delinquencies and NPA additions across the system over the past six quarters. We have taken corrective measures, and as a result, the personal loan portfolio has remained flat this quarter. However, the overall trend appears to have stabilised, and we anticipate these actions will lead to improvements over the next few quarters," ICICI Bank shared following its strong Q3 performance.

The management further assured that concerns regarding overall asset quality would not impede future growth. "We definitely see strong growth opportunities ahead. The corporate sector, which represents 20 percent of our portfolio, is performing well, and we’re also seeing the positive impact of previous provisioning and losses," ICICI Bank added.

ICICI Bank reported stable asset quality in Q3FY25, with the gross non-performing assets (NPA) ratio dropping to 1.96 percent, compared to 1.97 percent in the previous quarter and 2.3 percent a year ago. Meanwhile, the net NPA remained unchanged at 0.42 percent sequentially, though it was lower than 0.44 percent a year ago.