Q2 Earnings Highlights: ICICI Bank's net profit rises 36% to Rs 10,261 crore, NII up 24%

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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.

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.

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.

Dipak Gupta, MD and CEO, Kotak Mahindra Bank, said, "The bank has been working on bringing global talent to the bank. Global talent will bring in global banking and technology skills."

---- Net profit of Rs 10,261 crore for the September quarter of FY24, up 35.8 percent from Rs 7,557.8 crore in the same quarter last year.

-- Net Interest Income stood at 18,307.9 crore, rising 24 percent from Rs 14,786.8 crore registered in the year-ago quarter

-- Asset quality improved, with its gross NPA) ratio at 2.48% as of end-September, compared with 2.76% at the end of June.

--Total period-end deposits grew by 18.8% YoY to Rs 12,94,742 crore ($155.9 billion) at September 30, 2023

-- Average current account and savings account (CASA) ratio was 40.8% in Q2-2024

-- Domestic loan portfolio grew by 19.3% year-on-year to Rs 10,74,206 crore ($129.4 billion) at September 30, 2023

-- Net NPA ratio declined to 0.43% at September 30, 2023 from 0.48% at June 30, 2023

-- Provision coverage ratio on non-performing assets was 82.6% at September 30, 2023

-- Net loss of Rs 30.14 crore vs net profit of Rs 22.58 crore YoY

-- Revenue at Rs 453.76 crore vs Rs 1,197.66 crore YoY

-Net profit of Rs 1,323.27 crore was up from Rs 1,224.18 crore YoY

-Gross NPA of Rs 8,645.23 crore vs Rs 8,762.51 crore in the year-ago quarter

-Consolidated PAT grew 77% YoY and 4% QoQ to Rs 331 crore

-Consolidated Operating Profit grew 54% YoY and 12% QoQ to Rs. 765 crore

-Net NPA of 0.78% vs 1.00% for the previous quarter (Q1)

-Net profit at Rs 225.21 crore, up 47.4% YoY, falls 34% sequentially

-- Net profit up 24% YoY at Rs 3,191 crore

-- NII up 23.49% YoY at Rs 6,297 crore

-- Gross NPA at 1.72%, down from 2.08% recorded in the year-ago quarter

- Motilal Oswal Financial Services' report anticipates robust year-on-year earnings growth for India's banking sector in Q2, with private banks expected to see a 25 percent increase and PSU banks around 20 percent, despite potential net interest margin (NIM) compression.

- ICICI Bank is anticipated to reveal a robust net profit of Rs 9,422 crore, reflecting a 25 percent year-on-year growth, primarily driven by healthy net interest income (NII) and a stable asset quality, as per analysts' expectations. However, in a sequential comparison, there might be a marginal 2 percent decline from the Q1FY23-24 figure of Rs 9,648 crore. The bank has announced that their media briefing is set to commence at 4:15 pm on that day via an exchange filing. The Q2FY23-24 predictions from five different brokerages suggest that ICICI Bank's NII is likely to surge by 22 percent YoY to reach Rs 18,080 crore, thanks to a robust increase in loan growth and reduced provisions. Loan-loss provisions are expected to decrease by 6 percent YoY, totaling Rs 1,550 crore.

- Top companies slated to release their Q2 earnings results today are ICICI Bank, Yes Bank, RBL, IDBI Bank, Kotak Mahindra Bank, Finolex Industries, and Amber Enterprises, among others.