ICICI Bank Bets On Micro-Markets, 'Customer-Centric' Approach To Boost Profit Before Tax

ICICI Bank Ltd.'s focus remains on increasing profit before tax, according to Chief Executive Officer Sandeep Bakhshi.

The private sector bank aims to achieve this objective through the 360-degree customer-centric approach and by serving opportunities across ecosystems and micro-markets, he said at the company's post-earnings conference call on Monday.

"We continue to operate within the framework of our values to strengthen our franchise, maintaining high standards of governance, deepening coverage and enhancing delivery capabilities," said Bakhshi. "Focus on simplicity and operational resilience are key drivers for our risk calibrated profitable growth."

Chief Financial Officer Anindya Banerjee described how in the current environment, overall credit growth itself has come down. Hence, ICICI Bank "looks at all the other corporate borrowers from a customer 360 perspective and look at the totality of our relationship with the borrower."

In that context, if lending makes sense, ICICI Bank will be up for it, stated Banerjee.

ICICI Bank raised the monthly minimum average balance requirement across customer cohorts, effective Aug. 1. Metro and urban customers, who opened their savings accounts on Aug. 1 or later, will need to maintain Rs 50,000 monthly average balance. This was earlier Rs 10,000, which will continue to remain the minimum average balance for older customers. 

New customers in semi-urban areas will be required to maintain a minimum average balance of Rs 25,000 and rural customers will need to maintain Rs 10,000 from here. For older customers the minimum average balance remains at Rs 5,000 a month for both sets. 

The private sector bank's standalone net profit stood at Rs 12,768.21 crore, up 15% year-on-year, exceeding the consensus analysts estimates compiled by Bloomberg of Rs 11,770 crore. In the March quarter, the bottom line was Rs 12,630 crore.

Net interest income rose 11% over the year to Rs 21,635 crore. The net interest margin of the bank stood at 4.34% in the June quarter compared with 4.41% in quarter ended March and 4.36% in the year ago period.