ICICI Bank Limited is an Indian multinational bank and financial services company headquartered in Mumbai. It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management.
The bank has subsidiaries in the United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China and South Africa; as well as representative offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company’s UK subsidiary has also established branches in Belgium and Germany.
Quarterly Earnings Growth
The EPS of ICICI Bank in Q4FY23 has been computed at ₹14.11 as compared to ₹11.11 which was in Q4FY22.
Deposits, Provisions & Contingencies
ICICI Bank has reported that its total deposits have increased by 11% Year-on-Year to ₹1,180,841 crore and the average CASA ratio was 43.6% in Q4FY23. The domestic loan portfolio has grown by 20.5% Year-on-Year and the net NPA ratio has fallen down sequentially to 0.48% during Q4FY23 as compared to 0.55% in Q3FY23.
The bank has reported its provision coverage ratio on non-performing assets was at 83%. The total capital adequacy ratio was at 18.3%. The Tier-1 capital adequacy ratio was 17.6% on a standalone basis during Q4FY23. ICICI Bank said its gross NPA ratio has declined to 2.81% from 3.07% in Q3FY23 and the net non-performing assets declined by 26% year-on-year and 8.8% sequentially to ₹5,155 crore during Q4FY23.
Net interest income (NII) has skyrocketed by 40.2% Year-on-Year to ₹17,667 crore in Q4FY23 from ₹12,605 crore in Q4FY22. The bank has reported that the core operating profit (profit before provisions and tax, excluding treasury income) has jumped by 36.4% Year-on-Year to ₹13,866 crore in Q4FY23 from ₹10,164 crore in Q4FY22.
The retail loan portfolio which constitutes for 55% of the overall loan portfolio has increased by 22.7% Year-on-Year and 5.4% sequentially. The business banking portfolio has grown by 8% sequentially and 35% annually.
Declaration of Dividend
ICICI Bank in a stock exchange filing that “The Board has recommended a dividend of ₹8 per share in line with applicable guidelines. The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course”.
Fund raising
ICICI Bank said its Board of Directors have approved “Fund raising by way of issuances of debt securities including by way of nonconvertible debentures in domestic markets upto an overall limit of ₹250.00 billion by way of private placement and issuances of bonds/notes/offshore certificate of deposits in overseas markets upto USD 1.50 billion in single/multiple tranches for a period of one year, from the date of passing of resolution by the Board. The Board also authorised buyback of debt securities within the limits prescribed under applicable law.”
Network expansion
ICICI Bank has reported an increase of about 480 branches during FY2023. It has a network of 5,900 branches and 16,650 ATMs as of Q4FY23.
ICICI Bank stock price is about to make a double top candlestick pattern soon. The price has overextended above the 200-day exponential moving average and the weekly MFI is at 73 points which marks the stock as extremely overbought. The stock has been unable to break above the Rs 900 level which denotes the strong presence of operators. Traders can initiate short trades with proper risk management.
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