ICICI Bank Okays Rs 10/Share Dividend; Issues Rs 250.00 Bn of Fundraise Deal

Financial results for the quarter and year ending March 31, 2024, have been released by ICICI Bank. The profit after tax of ICICI Bank climbed from Rs 9,122 crore in Q4-2023 to Rs 10,708 crore in Q4-2024, a 17.4% year-on-year increase. From Rs 12,207 crore in Q4-2023 to Rs 14,321 crore in Q4-2024, the profit before tax climbed by 17.3% YoY. From Rs 31,896 crore in the year ended March 31, 2023 (FY2023) to Rs 40,888 crore in FY2024, the profit after tax climbed by 28.2% year on year. Profit before tax excluding treasury grew from Rs 12,247 crore in the quarter that ended on March 31, 2023 to Rs 14,602 crore in Q4-2024, a 19.2% year-on-year growth. From Rs 13,866 crore in Q4-2023 to Rs 15,320 crore in Q4-2024, the core operating profit climbed by 10.5% YoY. According to ICICI Bank, its net interest income (NII) climbed from Rs 17,667 crore in Q4-2023 to Rs 19,093 crore in Q4-2024, an 8.1% annual rise.

In comparison to 4.43% in Q3-2024 and 4.90% in Q4-2023, the bank's net interest margin in Q4-2024 was 4.40%. Non-interest income for the bank, excluding treasury, rose from Rs 5,127 crore in Q4-2023 to Rs 5,930 crore in Q4-2024, a 15.7% year-on-year gain. The bank's provisions in Q42024 were Rs 718 crore, as opposed to Rs 1,619 crore in Q4-2023, excluding the provision for tax.

To Rs 11,84,406 crore, total advances climbed by 2.7% sequentially and 16.2% annually. As of March 31, 2024, the net domestic advances had increased by 3.2% sequentially and 16.8% annually. On March 31, 2024, total period-end deposits reached Rs 14,12,825 crore, up 6.0% sequentially and 19.6% YoY. As of March 31, 2024, period-end term deposits have grown by 1.6% sequentially and by 27.7% annually to Rs 8,16,953 crore. In Q4 of 2024, average current account deposits rose 13.0% YoY. In Q4 of 2024, average savings account deposits rose by 4.6% YoY.

The provisioning coverage ratio on NPAs was 80.3% on March 31, 2024. From 2.30% on December 31, 2023 to 2.16% on March 31, 2024, was the decrease in the gross non-performing assets ratio. On March 31, 2024, the net NPA ratio was 0.42%, as opposed to 0.44% and 0.48% on December 31, 2023 and March 31, 2023, respectively. In Q4-2024, there were net additions to gross non-performing assets (NPAs) of Rs 1,221 crore as opposed to Rs 363 crore in Q3-2024, excluding write-offs and sales. Comparing Q4-2024 to Q3-2024, the gross non-performing assets (NPAs) grew from Rs 5,139 crore to Rs 5,714 crore. In Q4-2024, recoveries and upgrades of non-performing assets (NPAs) (excluding write-offs and sales) were Rs 3,918 crore compared to Rs 5,351 crore in Q3-2024.

The bank has written off gross NPAs of Rs 1,707 crore in Q4-2024. After accounting for the impact of the proposed dividend, the bank's overall capital adequacy ratio as of March 31, 2024, was 16.33%, and its CET-1 ratio was 15.60%, in comparison to the minimal regulatory standards of 11.70% and 8.20%, respectively. By March 31, 2024, the bank's network comprised 6,523 branches, 17,190 ATMs, and cash recycling machines, thanks to the opening of 623 branches in FY2024.

"The Board recommended a dividend of Rs 10 /- (Rupees Ten only) per equity share of face value of Rs 2/- each, subject to requisite approvals. The dividend on equity shares, will be paid/despatched on or after the same is approved by the shareholders at the ensuing Annual General Meeting (AGM) of the Bank," said ICICI Bank in a statement.

The Board of Directors on Saturday also approved "Fund raising by way of issuances of debt securities including by way of non-convertible debentures in domestic markets upto an overall limit of Rs 250.00 billion by way of private placement and issuances of bonds/notes/offshore certificate of deposits in overseas markets upto USD 1.50 billion for a period of one year, from the date of passing of resolution by the Board. The Board also authorised buyback of debt securities within the limits that the Board is authorised to approve under applicable law," as per a regulatory filing dated 27th April.

The Board authorised the debarment of Mr. Rajesh Iyer, Mr. Vikas Singhvi, Mr. Swanandi Phalnikar, Mr. Manish Maheshwari, Mr. Atul Kumar, Mr. Shamala Potnis, and Mr. Divyesh Shah from the senior management personnel category, with effect from April 30, 2024, closing business hours, and the addition of Mr. Soumendra Mattagajasingh to the category, with effect from May 1, 2024.