ICICI Bank: Q3 Financial Report Highlights Strong Profit Growth
ICICI Bank, a prominent private sector lender, has announced robust financial results for the third quarter of the current financial year. The bank reported a net profit of Rs 10,271.54 crore, marking a significant 23.5 percent increase from the Rs 8,312 crore recorded in the same quarter of the previous year. This impressive performance aligns with market expectations, which estimated a net profit of Rs 9,946 crore. The bank’s gross non-performing asset (NPA) saw a notable decline, standing at 2.30 percent compared to 3.07 percent in the corresponding quarter of the previous year. The net NPA also improved, reaching 0.44 percent, down from 0.55 percent in Q3FY23.
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ICICI Bank’s net interest income (NII) witnessed substantial growth, rising by 34.6 percent year-on-year to reach Rs 16,465 crore in Q3-2023, compared to Rs 12,236 crore in Q3-2022. The net interest margin exhibited a positive trend, reaching 4.65 percent in Q3-2023, up from 3.96 percent in Q3-2022 and 4.31 percent in the quarter ending September 30, 2022.
As of December 31, 2023, ICICI Bank’s total capital adequacy ratio was reported at a robust 16.70 percent, surpassing the minimum regulatory requirement of 11.70 percent. The Common Equity Tier 1 (CET-1) ratio stood at 16.03 percent, comfortably exceeding the minimum regulatory requirement of 8.20 percent.
In terms of asset quality, the net additions to gross NPAs, excluding write-offs and sales, amounted to Rs 363 crore in Q3-2024, a notable increase from Rs 116 crore in Q2-2024. Gross NPA additions reached Rs 5,714 crore in Q3-2024, up from Rs 4,687 crore in Q2-2024. The recoveries and upgrades of NPAs, excluding write-offs and sales, were reported at Rs 5,351 crore in Q3-2024, compared to Rs 4,571 crore in Q2-2024. The bank also wrote off gross NPAs totaling Rs 1,389 crore in Q3-2024. The provisioning coverage ratio on NPAs stood at a commendable 80.7 percent as of December 31, 2023.
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ICICI Bank’s robust financial performance in Q3-2023 reflects its strong position in the banking sector, marked by improved profitability, healthy asset quality, and compliance with regulatory requirements. The bank’s focus on prudent financial management and effective risk mitigation strategies has contributed to its sustained growth and stability.
Data in tabular format:ICICI Bank
| Metric | Q3-2023 | Q3-2022 | Change |
|---|---|---|---|
| Net Profit (in crores) | Rs 10,271.54 | Rs 8,312 | +23.5% |
| Gross NPA | 2.30% | 3.07% | Decreased |
| Net NPA | 0.44% | 0.55% | Improved |
| Net Interest Income (in crores) | Rs 16,465 | Rs 12,236 | +34.6% YoY |
| Net Interest Margin | 4.65% | 3.96% | Improved |
| Capital Adequacy Ratio | 16.70% | N/A | Exceeds Regulatory Minima |
| CET-1 Ratio | 16.03% | N/A | Exceeds Regulatory Minima |
| Net Additions to Gross NPAs | Rs 363 crore | Rs 116 crore | Increased |
| Gross NPA Additions | Rs 5,714 crore | Rs 4,687 crore | Increased |
| Recoveries and Upgrades | Rs 5,351 crore | Rs 4,571 crore | Increased |
| Gross NPAs Written Off | Rs 1,389 crore | N/A | – |
| Provisioning Coverage Ratio | 80.7% | N/A | – |
FAQs:
1. How much profit did ICICI Bank make in the third quarter?
- ICICI Bank made a profit of Rs 10,271.54 crore in the third quarter, which is more than what it earned in the same time last year.
2. Did ICICI Bank meet the expectations of the market?
- Yes, the bank’s profit of Rs 10,271.54 crore was in line with what the market expected, around Rs 9,946 crore.
3. Is the bank’s bad loans percentage lower now?
- Yes, the bad loans percentage, known as gross non-performing assets (NPA), is lower at 2.30 percent compared to the same time last year.
4. Did the bank improve in handling loans that might not be repaid (net NPA)?
- Yes, the net NPA improved to 0.44 percent from 0.55 percent in Q3FY23.
5. How much did ICICI Bank earn from the interest on loans?
- ICICI Bank’s net interest income (NII) increased by a big 34.6 percent to Rs 16,465 crore in Q3-2023.
6. What is net interest margin, and did it get better for the bank?
- Net interest margin was 4.65 percent in Q3-2023, up from 3.96 percent in Q3-2022 and 4.31 percent in the quarter ending September 30, 2022.
7. Is ICICI Bank safe in terms of having enough money set aside?
- Yes, as of December 31, 2023, ICICI Bank’s total capital adequacy ratio was a strong 16.70 percent, more than what rules require.
8. Does the bank have enough money kept aside for emergencies (CET-1 ratio)?
- Yes, the Common Equity Tier 1 (CET-1) ratio was 16.03 percent, higher than the required minimum of 8.20 percent.
9. Did ICICI Bank face more bad loans in the third quarter?
- Yes, there were more bad loans (Rs 5,714 crore) compared to the second quarter (Rs 4,687 crore).
10. How did the bank deal with bad loans in Q3-2024?
- The bank recovered and upgraded NPAs (bad loans) amounting to Rs 5,351 crore in Q3-2024.
11. Did ICICI Bank write off any bad loans, and how much?
- Yes, the bank wrote off Rs 1,389 crore in bad loans in Q3-2024.
12. Is ICICI Bank doing well overall?
- Yes, ICICI Bank’s strong performance shows it’s doing well with improved profits, good management, and following the rules.
Disclaimer: The information shared here is based on publicly available data and should not be considered professional advice. Users are advised to verify details independently and consult relevant experts for personalized guidance.
