ICICI Bank Q4 net profit jumps 15 pc to Rs 13,502 cr
MUMBAI, Apr 19 : ICICI Bank on Saturday reported a 15.7 per cent jump in its consolidated net profit to Rs 13,502 crore for the January-March quarter of 2024-25.
On a standalone basis, India’s second-largest private sector lender’s net profit for the March quarter came at Rs 12,630 crore, up 18 per cent against Rs 10,708 crore in the year-ago period.
The core net interest income rose by 11 per cent to Rs 21,193 crore from the year-ago period’s Rs 19,093 crore on the back of a 13.3 per cent increase in loans and an expansion in the net interest margin to 4.41 per cent from 4.40 per cent in the year-ago period.
Speaking with reporters, its executive director Sandeep Batra hinted that the NIM may come under pressure going ahead because of RBI’s rate cuts, pointing out that 53 per cent of its loanbook is linked to the repo rate and added that all the transmission will happen in about three months.
He added that the bank will continue to look at ways to expand the margin through changes in loan product mix.
In line with the system, which was forced to go slow on the riskier unsecured assets by the RBI, the bank’s credit card and personal loan growth also slowed down, Batra said, attributing it as a major factor restricting the overall retail credit growth.
The overall retail asset slippages came at Rs 4,300 crore for the reporting quarter, Batra said. He said that the delinquencies in the unsecured assets, which form 13 per cent of the bank’s book now, have been elevated in the last year.
Replying to questions on credit growth outlook, he said the bank will continue to look at ways to expand credit in a risk-adjusted perspective.
The savings account interest rate cut of 0.25 percentage point was in response to what is happening on the policy side, he said.
He said the share of the low-cost current and savings account deposits has been stable at 38.4 per cent, and added that the bank is not targeting any level on this front.
The bank will be adding 400 branches in the new year, he said, adding that the overall deposit growth is 14 per cent.
The non-interest income excluding treasury increased 18.4 per cent to Rs 7,021 crore.
Provisions came at Rs 891 crore in the March quarter as against Rs 718 crore in the year-ago period.
The gross non-performing assets ratio improved to 1.67 per cent at the end of March, from 1.96 per cent in December 2024.
The total capital adequacy ratio as of March 31 was 16.55 per cent with the core buffers at 15.94 per cent.
The bank’s board has recommended a dividend of Rs 11 per share.
Among its subsidiaries, the life insurance arm’s net profit increased to Rs 1,189 crore from Rs 852 crore in the year-ago period, general insurance arm posted a 30 per cent growth in the number to 2,508 crore and the asset management arm’s jumped by over 29 per cent to Rs 2,651 crore. (PTI)
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