ICICI Bank Q2 Results: Net Profit Climbs 36% To Rs 10,261 Cr On Strong NII & Lower Provisions

The standalone and consolidated accounts of ICICI Bank Limited for the quarter ended September 30, 2023 (Q2-2024) were approved by the board of directors at today's meeting in Mumbai. From Rs 7,558 crore in Q2 2023 to Rs 10,261 crore in Q2 2024, the profit after tax jumped by 35.8% annually. ICICI Bank said its Net interest income (NII) increased by 23.8% year-on-year to Rs 18,308 crore during the quarter under review from Rs 14,787 crore in the year-ago quarter.

The bank's core operating profit grew by 21.7% year-on-year to Rs 14,314 crore in Q2-2024 from Rs 11,765 crore in Q2-2023; excluding dividend income from subsidiaries/associates, core operating profit grew by 22.9% year-on-year in Q2-2024.

In Q2 2024, the bank's net interest margin was 4.53%, up from Q2 2023's 4.31% and Q1 2024's 4.78%. The bank's non-interest income excluding treasury increased by 14.0% year-on-year to Rs 5,861 crore in Q2-2024 from Rs 5,139 crore in Q2-2023. In Q2 2024, ICICI Bank's provisions (excluding tax provisions) were Rs 583 crore as opposed to Rs 1,644 crore in Q2 2023.

According to the bank, as of September 30, 2023, net domestic advances climbed by 4.8% sequentially and 19.3% annually. On September 30, 2023, the total period-end deposits reached Rs 12,94,742 crore, up 4.5% sequentially and 18.8% annually. Period-end term deposits reached Rs 7,67,112 crore on September 30, 2023, up 9.2% sequentially and 31.8% annually. In Q2 2024, average current account deposits rose 14.0% YoY. In Q2 2024, average savings account deposits rose 4.5% YoY.

The gross NPA ratio decreased from 2.76% at the end of June 2023 to 2.48% at the end of September 2023. From 0.48% at June 30, 2023, and 0.61% at September 30, 2022, the net NPA ratio decreased to 0.43% at September 30, 2023. The net addition to gross NPAs, excluding write-offs and sales was Rs 116 crore in Q2-2024 compared to Rs 1,807 crore in Q1-2024.

The gross NPA additions were Rs 4,687 crore in Q2-2024 compared to Rs 5,318 crore in Q1-2024. In comparison to the minimal regulatory standards of 11.70% and 9.70%, respectively, the Bank's overall capital adequacy ratio as of September 30, 2023 was 17.59% and Tier-1 capital adequacy was 16.86%. This includes earnings for the six months ended (H1-2024).

From Rs 8,007 crore in Q2 2023 to Rs 10,896 crore in Q2 2024, the consolidated profit after tax of ICICI Bank climbed by 36.1% YoY. The bank's Consolidated total assets grew by 15.9% year-on-year to Rs 21,24,850 crore as of September 30, 2023 from Rs 18,33,154 crore as of September 30, 2022.

As of September 30, 2023, the bank had a network of 6,248 branches and 16,927 ATMs and cash recycling machines after adding 174 branches during Q2-2024.