In a remarkable financial performance, India’s second-largest private sector lender, ICICI Bank, has posted impressive figures for the quarter ending December 31, 2023 (Q3-2024). The bank’s net profit witnessed a substantial rise of 23.5%, reaching ₹10,272 crore, showcasing its resilience and strategic financial management in a dynamic market.
Financial Highlights
1) Net Interest Income (NII) Growth –
The bank’s NII recorded a robust growth of 13.4%, reaching ₹18,678 crore in Q3-2024, compared to ₹16,465 crore in the same period last year.
Profit before tax, excluding treasury, grew by 23.4% year-on-year to ₹13,551 crore, demonstrating the bank’s strong financial position.
2) Core Operating Profit –
Core operating profit saw a commendable increase of 10.3%, reaching ₹14,601 crore in Q3-2024 from ₹13,235 crore in Q3-2023.
Net interest margin stood at 4.43%, reflecting the bank’s efficiency in managing its interest-earning assets.
3) Income Numbers –
Non-interest income, excluding treasury, rose by 19.8% year-on-year to ₹5,975 crore.
Fee income grew by 19.4%, amounting to ₹5,313 crore, with retail, rural, business banking, and SME customers contributing significantly.
4) Provisions and Asset Quality –
Provisions (excluding tax provision) reduced to ₹1,050 crore in Q3-2024 from ₹2,257 crore in the year-ago period.
The provisioning coverage ratio on non-performing assets (NPA) stood at a robust 80.7% on December 31, 2023.
5) Credit Growth –
Net domestic advances grew by 18.8% year-on-year, with the retail loan portfolio witnessing a growth of 21.4%.
The SME business, rural portfolio, and domestic corporate portfolio exhibited strong growth figures.
6) Deposit Growth –
Total period-end deposits increased by 18.7% year-on-year to ₹13,32,315 crore at December 31, 2023.
Period-end term deposits registered a significant growth of 31.2% year-on-year.
7) Digital and Payments Platforms –
The bank demonstrated substantial growth in digital transactions, with an 85% year-on-year increase in merchant acquiring transactions through UPI.
ICICI Bank held a substantial market share in electronic toll collections through FASTag.
8) Network Expansion –
The bank expanded its reach by adding 471 branches, boasting a network of 6,371 branches and 17,037 ATMs and cash recycling machines.
Summary
ICICI Bank’s exceptional financial performance in Q3-2024 reflects its robust operational capabilities, effective risk management, and strategic focus on digital initiatives. With improved asset quality and strong growth across various segments, the bank continues to establish itself as a critical player in the Indian banking sector.
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