Sandeep Batra, ICICI Bank: The principles of “Return of Capital”, “Fair to Customer, Fair to Bank” and “One Bank, One Team, One RoE” will guide our operations

Mumbai: ICICI Bank, a leading private sector bank in India, demonstrated remarkable year-on-year growth, registering a robust 23.6% surge in standalone profit, reaching Rs 10,272 crore. Additionally, the net interest income experienced a substantial 13.4% increase, reaching Rs 18,678 crore for the third quarter concluding in December 2023.

The bank’s gross NPA slipped to 2.30% in Q3 FY24 compared to 3.07% in Q3 FY23, alongside the net NPA ratio was 0.44% in this quarter compared to 0.55% in Q3 FY23. These are the lowest NPA numbers in the last nine years. The bank has marked a 2.33% return on assets (ROA) and also recorded an equity (ROE) of 18.5% in this quarter.

Mr. Sandeep Batra, Executive Director, ICICI Bank said, “We continue to operate within our strategic framework to strengthen our franchise and expand our technology and digital offerings. Maintaining high standards of governance, deepening coverage and enhancing delivery capabilities are our focus areas for risk calibrated profitable growth.”

Deposit growth:

ICICI Bank’s deposit portfolio displayed robust growth, with total period-end deposits rising by 18.7% year-on-year and 2.9% sequentially to Rs 13,32,315 crore in Q3 FY24. This marks the second-highest growth in total period-end deposits in the last 11 quarters for the bank. Period-end term deposits increased by 31.2% year-on-year and 4.9% sequentially, reaching Rs 8,04,320 crore. Average current account deposits rose by 11.6% year-on-year, and average savings account deposits increased by 2.8% year-on-year. The average CASA ratio for Q3 FY24 was 39.4%, with term deposits and other deposits making up the remaining 60.4% of the total deposits.

Loan Growth:

In terms of loan growth, the bank’s overall loan portfolio grew by 18.5% year-on-year as of Q3 FY24. The net domestic loan portfolio also grew by 18.8% year-on-year and 3.8% sequentially this quarter. The retail loan portfolio, which constitutes 54.3% of the total loan portfolio, grew by 21.4% year-on-year and 4.5% sequentially. The business banking portfolio grew by 31.9% year-on-year, and the SME business portfolio, grew by 27.5% year-on-year. Similarly, the rural portfolio grew by 18.2%, and the domestic corporate portfolio grew by 13.3% year-on-year as of September 30, 2023. The personal loan portfolio grew by 37.3%, and the credit card portfolio grew by 39.5% year-on-year.

Asset Quality:

In Q3 FY24, ICICI Bank maintained a positive trajectory in managing its asset quality. The gross NPA ratio was 2.30% as of December 2023, compared to 3.07% as of December 2022. Notably, the net NPA ratio also slipped to a mark of 0.44% in this quarter compared to 0.55% as of December 2022, showcasing the bank’s robust risk management measures.

The net addition to gross Non-Performing Assets (NPAs), excluding write-offs and sale, was Rs 363 crore in Q3 FY24 compared to Rs 116 crore in Q2 FY24. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 5,351 crore in Q3 FY24 compared to Rs 4,571 crore in Q2 FY24. The Bank has written off gross NPAs amounting to Rs 1,389 crore in Q3 FY24. The provision coverage ratio on NPAs was 80.7% as of December 31, 2023.

Excluding NPAs, the total fund-based outstanding to all borrowers declined to Rs 3,318 crore or 0.3% of total advances at December 31, 2023, from Rs 3,536 crore at September 30, 2023. The bank holds provisions amounting to Rs 1,032 crore against these borrowers as of December 31, 2023. During the quarter, the bank continued to maintain contingency provisions of Rs 13,100 crores.

Capital adequacy:

Including profits for the nine months ended December 31, 2023, the bank’s total capital adequacy ratio and CET-1 ratio at December 31, 2023, were 16.70% and 16.03%, respectively, exceeding the minimum regulatory requirements of 11.70% and 8.20%.

Mr. Batra also emphasised, “Going forward, we will continue to operate within our strategic framework while focusing on micro markets and ecosystems. The principles of “Return of Capital”, “Fair to Customer, Fair to Bank” and “One Bank, One Team, One RoE” will guide our operations. We focus on building a culture, where every employee in the Bank serves customers with humility and upholds the values of brand ICICI. We aim to be the trusted financial services provider of choice for our customers and deliver sustainable returns to our shareholders.”

Disclaimer : The above is a featured article.