ICICI Bank Q3 results: Five highlights from the earnings report

The bank's net NPA ratio declined to 0.55 percent from 0.85 percent last year.

Private lender ICICI Bank on January 21 announced its results for the quarter ending December 2022. The bank reported a 34 percent rise in profit after tax (PAT).

Here are key highlights from the bank’s earnings report card for the quarter ending December 2022:

Rise in PAT

On a year-on-year (YoY) basis, the bank recorded a 34 percent rise in PAT to Rs 8,312 crore from Rs 6,194 crore in the corresponding quarter last year.

Net interest income (NII) increased by 34.6 percent YoY to Rs 16,465 crore from Rs 12,236 crore last year.

The net interest margin (NIM) was 4.65 percent compared to 3.96 percent last year.

High provisions

Provisions for the banks increased by 12.5 percent YoY to Rs 2,257 crore from Rs 2,007 crore in the corresponding quarter last year.

During the quarter, the bank changed its provisioning norms on non-performing assets (NPA) which resulted in higher provisions amounting to Rs 1,196 crore in the quarter ended December 2022.

Deposit growth

The bank’s total period-end deposits increased by 10.3 percent YoY to Rs 11.2 lakh crore. Period-end term deposits increased by 14.2 percent YoY to Rs 6,13,208 crore.

Average current account and savings account (CASA) deposits increased by 10.4 percent YoY during the quarter ending December 2022.

Asset quality improved

The gross NPA ratio declined to 3.07 percent for the third quarter of the fiscal year 2022-23 from 4.13 percent last year.

The net NPA ratio declined to 0.55 percent from 0.85 percent last year.

There were net additions of Rs 1,119 crore to gross NPAs compared to Rs 605 crore in the quarter ended September 2022.

The gross NPA additions were Rs 5,723 crore compared to Rs 4,366 crore last year.

Sectoral credit growth

The retail loan portfolio grew by 23.4 percent YoY and comprised 54.3 percent of the total loan portfolio as on December 31, 2022.

Including non-fund outstanding, the retail portfolio was 44.9 percent of the total portfolio for the quarter ending December 2022.

The business banking portfolio grew by 37.9 percent YoY on December 31, 2022.

The SME business, comprising borrowers with a turnover of less than Rs 250 crore, grew by 25 percent YoY.