Sandeep Bakhshi, ICICI Bank: We will remain focused on maintaining a strong balance sheet
Mumbai: ICICI Bank, one of the leading private lenders, has announced stellar financial performance for Q2 FY24 with remarkable growth across key indicators. The profit after tax soared by an impressive 35.8% year-on-year to Rs 10,261 crore in Q2 FY24. The bank’s Net Interest Income (NII) surged by 23.8% year-on-year, reaching Rs 18,308 crore in Q2 FY24. Gross NPA slipped to 2.48% in Q2 FY24 from 2.7% in a year ago period. During the period, net NPA reduced from 0.61% in Q2 FY23 to 0.43% in Q2 FY24. These are the best NPA numbers in the last nine years.
The bank has sustained the all-time high of 2.41% in return on assets (ROA) and also recorded the highest return on equity (ROE) of 19.1% in the quarter ended September 30, 2023.
Mr. Sandeep Bakhshi, MD & CEO at ICICI Bank said, “Our strategic focus continues to be growing our core operating profit less provision– that is profit before tax excluding treasury income-through the 360 degree customer-centric approach, and by serving opportunities across ecosystems and micro markets. We continue to operate within our strategic framework and strengthen our franchise, enhance our delivery and servicing capabilities, and expand our technology and digital offerings.”
Loan growth:
In terms of loan growth, the bank’s overall loan portfolio increased by 18.3% year-on-year as on September 30, 2023. The net domestic loan portfolio rose by 19.3% year-on-year as on September 30, 2023. The retail loan portfolio which constitutes 54.3% of the total loan portfolio increased by 21.4% year-on-year. The business banking portfolio grew by 30.3% year-on-year and the SME business, comprising borrowers with a turnover of less than Rs 250 crore, rose by 29.4% year-on-year. Similarly, the rural portfolio increased by 17.3% and domestic corporate portfolio increased by 15.3% year-on-year as of September 30, 2023. The personal loan portfolio improved by 40.4% and credit cards portfolio improved by 29.5% year-on-year.
Mr. Bakhshi said, “We continue to enhance our digital offerings and platforms to onboard new customers in a seamless manner, provide them with end-to-end journeys and solutions and enable more effective data-driven cross sell and up sell.”
Deposit growth:
ICICI Bank’s deposit portfolio also showed strong growth, with total period-end deposits increasing by 18.8% year-on-year to Rs 12,94,742 crore in Q2 FY24. While the period-end term deposit increased by 31.8% year-on-year to Rs 7,67,112 crore. The average current account deposits increased by 14% year-on-year, and the average savings account deposits increased by 4.5% year-on-year. Average CASA ratio for Q2 FY24 was 40.8%. The term deposits accounted to 59.2% of the total deposits.
Asset quality:
In Q2 FY24, ICICI Bank maintained a positive trajectory in managing its asset quality. The gross NPA ratio was 2.48% as of September 30, 2023, compared to 2.76% on June 30, 2023. Notably, the net NPA ratio slipped to 0.43% as of September 30, 2023 compared to 0.48% as on June 30, 2023, showcasing the bank’s robust risk management measures.
The net addition to gross NPAs, excluding write-offs and sale, were Rs 116 crore in Q2 FY24 compared to Rs 1,807 crore in Q1 FY24. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 4,571 crore in Q2 FY24 compared to Rs 3,511 crore in Q1 FY24. The bank has written-off gross NPAs amounting to Rs 1,922 crore in Q2 FY24. The provision coverage ratio on NPAs was 82.6% on September 30, 2023. During the quarter, the bank continued to maintain contingency provisions of Rs 13,100 crore as of September 30, 2023.
Capital adequacy:
Including profits for the six months ended September 2023 (H1-2024), the bank’s total capital adequacy ratio was 17.59% and tier-1 capital adequacy was 16.86% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.
“We believe our focus on customer 360, extensive franchise and collaboration within the organisation, backed by our digital offerings, process improvements and service delivery initiatives will enable us to deliver holistic solutions to customers in a seamless manner and grow market share across key segments. We will continue to make investments in technology, people, distribution and building our brand. We will remain focused on maintaining a strong balance sheet with prudent provisioning and healthy levels of capital.” he added.
Disclaimer : The above is a featured article.
