ICICI Bank has reported a robust 14.6 per cent year-on-year (Y-o-Y) increase in net profit for the first quarter of the current financial year (Q1FY25), reaching Rs 11,059 crore. This growth was primarily driven by treasury gains despite an uptick in provisions. In comparison, the bank’s net profit stood at Rs 9,648 crore in the same period last year.
The private sector lender’s net interest income (NII) saw a 7.3 per cent Y-o-Y rise to Rs 19,553 crore, underpinned by healthy growth in advances. The bank’s net interest margin (NIM), a key profitability metric, remained nearly flat at 4.36 per cent in Q1FY25.
ICICI Bank‘s provisions increased to Rs 1,332 crore in Q1FY25 from Rs 1,292 crore in the corresponding period a year ago. However, the asset quality remained stable, with the gross non-performing assets (NPAs) ratio at 2.15 per cent at the end of Q1FY25, compared to 2.16 per cent in Q4FY24. The net NPA ratio stood at 0.43 per cent.
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The gross NPA additions for the quarter amounted to Rs 5,916 crore, up from Rs 5,139 crore in Q4FY24. Some fresh slippages originated from Kisan Credit Card (KCC) accounts, but the bank’s management indicated that credit costs remain well-contained and below normal levels. Recoveries and upgrades of NPAs, excluding write-offs and sales, stood at Rs 3,292 crore in Q1FY25, compared to Rs 3,918 crore in the previous quarter.
ICICI Bank’s advances saw a 15.7 per cent Y-o-Y growth and a 3.3 per cent sequential growth, reaching Rs 12.23 trillion in Q1FY25. This was driven by a 17.1 per cent Y-o-Y increase in the retail portfolio, a 35.6 per cent Y-o-Y growth in the business banking portfolio, a 23.5 per cent Y-o-Y growth in the SME portfolio, and a 16.9 per cent Y-o-Y growth in the rural banking portfolio.
Deposits grew by 15.1 per cent Y-o-Y and 0.9 per cent sequentially to Rs 14.26 trillion in Q1FY25. Period-end term deposits rose by 19.9 per cent Y-o-Y and 3.1 per cent sequentially to Rs 8.42 trillion, while average deposits increased by 17.8 per cent Y-o-Y and 3.3 per cent sequentially to Rs 13.78 trillion.
Sandeep Batra, Executive Director of ICICI Bank, highlighted the bank’s strategy of risk-calibrated growth. “Clearly, deposits and loans go hand in hand. Our average deposits grew 17.8 per cent Y-o-Y and our loan portfolio grew by 15.7 per cent Y-o-Y. The wholesale deposits in the system have remained sticky, and we have seen some banks increasing retail deposits. Our focus will remain on trying to meet the 360 needs of the customers, and hopefully, it will play out well for us in the future,” he said.
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