ICICI Bank Q3 Results: Profit Up 24%, Meets Estimates

ICICI Bank Ltd.'s net profit grew 24% in the third quarter on higher other income and lower provisions, meeting estimates.

The private sector lender posted a profit of Rs 10,271 crore for the October–December period, compared with Rs 8,312 crore in the year-ago period, according to an exchange filing. Analysts polled by Bloomberg estimated a net profit of Rs 9,950 crore for the third quarter.

Net interest income, or core income, rose 13% to Rs 18,679 crore. Other income was up 21% at Rs 6,097 crore.

ICICI Bank Q3 Results Highlights

• Net profit up 23.5% to Rs 10,271 crore. (YoY)

• NII up 13% at Rs 18,679 crore. (YoY)

• Gross NPA down 18 basis points to 2.3% vs 2.48% (QoQ)

• Net NPA up 1 bps 0.44% vs 0.43% (QoQ)

The private lender's capital adequacy ratio fell 146 basis points on a sequential basis to 14.61%. The hit on capital is attributed to the increase in risk weights for unsecured consumer loans by the Reserve Bank of India in November. Higher risk weights typically lead to a fall in capital adequacy as the bank has to set aside additional capital against such loans.

Total advances rose 19% year-on-year to Rs 11.5 lakh crore. Net domestic advances rose 19%, primarily due to a 21% year-on-year growth in retail advances.

Total deposits for the bank were up 19% to Rs 13.3 lakh crore. Term deposits were up 31% to over Rs 8 lakh crore. Average current account deposits rose 12%, while average savings account deposits rose 2.8% year-on-year. Average CASA ratio was 39.4%.