ICICI Bank Q3 Results Review - Firing On All Cylinders: Axis Securities

ICICI Bank reported strong advances growth, driven by sustained growth in the retail, SME, and the business banking book.

<div class="paragraphs"><p>Exterior of ICICI Bank (Photo: Vijay Sartape /BQ Prime) </p></div>
Exterior of ICICI Bank (Photo: Vijay Sartape /BQ Prime)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Axis Securities Report

ICICI Bank Ltd. reported strong advances growth of 20/4% YoY/QoQ, driven by sustained growth in the retail (up 23/4% YoY/QoQ), small and medium enterprise (up 25/8% YoY/QoQ), and the business banking book (up 38/5% YoY/QoQ).

Retail growth was primarily led by auto finance, personal loans, and credit card segment. Driven by strong credit growth and margin expansion (up 69/34 basis points YoY/QoQ), net interest income grew by 35/11% YoY/QoQ.

Fee income growth remained muted at 4/2% YoY/QoQ. Opex growth remains steady at 16/9% YoY/QoQ with the cost-income ratio at 38.2% versus 41.1% YoY/QoQ.

Pre-provision operating profit growth was healthy at 31/14% YoY/QoQ. Provisions were slightly higher (up 12/37% YoY/QoQ) owing to ICICI Bank tightening its provisioning norms for the corporate/SME segment’s nn performing assets.

Despite higher provisions, earnings growth was healthy at 34/10% YoY/QoQ.

Asset quality improved led by better recoveries despite marginally higher slippages from the agri pool. GNPA stood at 3.1% (down 106/down 12bps YoY/QoQ).

Click on the attachment to read the full report:

Axis Securities ICICI Bank Q3FY23 Result Update.pdf
ICICI Bank Q3 Results Review - Net Interest Margins, Return On Asset At Multi Quarter High: IDBI Capital


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.