Mumbai, Oct 26 (PTI) ICICI Bank on Saturday reported an 18.8 per cent jump in its consolidated profit after tax to Rs 12,948 crore compared to the year-ago period.
On a standalone basis, the second largest private sector lender’s net profit rose by 14.5 per cent to Rs 11,746 crore in the July-September period this year. The total standalone income increased to Rs 47,714 crore during the quarter under review against Rs 40,697 crore in the same quarter last year.
Its core net interest income grew 9.5 per cent to Rs 20,048 crore on the back of a 15.7 per cent growth in the domestic loan portfolio but was held back by a decline in margin at 4.27 per cent as against 4.53 per cent in the year-ago period.
The bank’s executive director Sandeep Batra said the NIMs, which stood at 4.36 per cent in the quarter-ago period, will be stable going forward.
The non-interest income grew 10.8 per cent at Rs 6,496 crore, helped by a 13.3 per cent growth in the fee income at Rs 5,894 crore.
The bank’s provisions more than doubled to Rs 1,233 crore during the reporting quarter as against Rs 583 crore in the year-ago period.
Batra said that the provisions were lower in the year-ago period because of higher recoveries, and added that the amount of money set aside is only 0.4 per cent of the book.
Its deposits grew at 15.7 per cent during the quarter, and Batra exuded confidence that the bank is comfortable to meet the loan demand with the deposit growth. He said the credit and deposits will move “in tandem” from here on and added that the bank’s liquidity coverage ratio is 120 per cent.
Batra said even if customer money goes into the capital markets, it comes back to the banking system in some other character or a different tenor. The challenge for banks is to have sufficient offerings in order to get the money, he said.
On the asset side, retail loans grew 14.2 per cent and the same included a tempering down in the problematic segments of personal loans (17.3 per cent) and credit cards (27.9 per cent).
Batra said the bank has reduced its growth in the unsecured loans and the same now occupies 14 per cent of the overall loan book, but added that it does not see any challenge on the exposures.
The bank’s two-wheeler loans de-grew by 32.4 per cent despite a 16 per cent volume growth in the industry, while the overseas book was down 6 per cent.
A bulk of the asset quality stress came from the retail and rural loans, with the two segments accounting for Rs 4,341 crore of the Rs 5,073 crore of fresh slippage.
The bank management declined to offer any specific comment on the source of the retail slippages, and if the unsecured segment is resulting in the same.
The gross non-performing assets ratio improved to 1.97 per cent as of September 30, 2024, as against 2.15 per cent in June 2024.
During the quarter, it added 90 branches to take its overall network size to 6,613 branches.
Batra said the Reserve Bank’s draft on businesses which a bank can own will not have any material impact on the lender even if implemented in toto.
Its overall capital adequacy ratio was 16.66 per cent with the core buffer at 15.96 per cent.
Among the subsidiaries, the life insurance arm’s profit inched up to Rs 252 crore, the general insurance arm reported 20 per cent growth at Rs 694 crore and the asset management company posted a handsome increase to Rs 691 crore. PTI AA MR
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