India's second largest private bank saw its July-September net profit rise on higher core income and lower provisions.
ICICI Bank's net profit for the quarter stood at Rs 7,558 crore, up 37% year-on-year. Analysts polled by Bloomberg estimated a Rs 7,411.6 crore net profit for the three months.
Net interest income, or core income, for the bank rose 26% from a year ago and stood at Rs 14,787 crore. Other income too rose 5.4% year-on-year to Rs 5,055 crore.
Net interest margin as of September 30 stood at 4.31%, up by 30 basis points on a quarter-on-quarter basis.
Gross non-performing asset ratio for the bank fell by 22 basis points sequentially to 3.19%. Similarly, net NPA improved to 0.61% as of September 30, compared with 0.7% as of June 30.
Gross additions to bad loans were at Rs 4,366 crore during the second quarter, while recoveries and upgrades stood at Rs 3,761 crore. During the July-September period, the bank wrote off loans worth Rs 1,103 crore.
Provisions for the quarter fell 39% year-on-year to Rs 1,644.5 crore. Despite this, the provision coverage ratio stood at 80.6% as of September 30.
Business Update
Total advances rose to Rs 9.38 lakh crore, up 23% year-on-year. While retail loans rose 25% from a year ago, the business banking book rose 43%.The domestic corporate loan book rose 23% year-on-year.
Deposits stood at Rs 10.9 lakh crore, up 12% year-on-year. Average current account and savings account deposits increased by 16%, while term deposits rose 11% to Rs 5.82 lakh crore.
The bank's board approved the reappointment of Sandeep Bakhshi as MD & CEO for a period of three years starting October 4, 2023. The reappointment is subject to approvals from Reserve Bank of India and ICICI Bank shareholders.
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