ICICI Bank Q1 results: Net profit climbed 15.5% to Rs 12,768 crore, NII rose 10.6%
ICICI Bank Q1 results: ICICI Bank reported a year-on-year increase of independent net profit by 15.5% compared to Rs 12.768 crore in Q1. Net interest income rose 10.6% to Rs 21,635 crore.
Core operating profit rose 13.6% to Rs 17,505 crore, while pre-tax profit (excluding the Ministry of Finance) was Rs 15,699 crore, an increase of 11.4% over the same period last year. However, the bank reported in exchange filings that the net interest margin (NIM) narrowed slightly to 4.34% from 4.36% in the first quarter.
Commercial loans and electricity credit growth, rural loans decline
According to the document, the bank’s total loan letters remain healthy, with domestic advances rising 12% year-on-year to Rs 13.3 crore. Interestingly, commercial banks are star performers, recording a 29.7% increase. Retail loans, which account for more than half of the loan portfolio, grew 6.9%, while small amounts of rural loans fell 0.4%.
Total progress, including international operations, will increase by 11.5% year-on-year to Rs 13.64 crore. Although the domestic corporate loan book grew 7.5% per year, it showed a sequential decline, suggesting the softness of large-scale price demand.
Improved asset quality, reserve
ICICI Bank maintains strong control over asset quality. The total NPA fell to 1.67% from 2.15% a year ago, while the net NPA slightly increased to 0.41%. The bank kept its supply coverage at 75.3%.
From Rs 133.2 crore last year, the provisions for Q1 (excluding taxes) rose to Rs 181.5 crore in Q1, partly due to the fundamental effects of the same quarter last year, with the one-time sales associated with alternative investment funds of Rs 38.9 crore.
Deposit growth snapshot
Sediments continue to grow at a healthy rate. Deposits at the end of the cycle increased by 12.8% to Rs 1,608 crore, while average deposits increased by 11.2%. The CASA ratio is a key metric indicating low-cost sediments at 38.7%.
On the strategic side, the bank’s board of directors approved a 100% stake in ICICI Prudential Life, making it a wholly owned subsidiary and approved by regulatory authorities from RBI and PFRDA.
Subsidiary revenue update
ICICI Bank announced a 15.9% net profit on the basis of the merger to Rs 13.558 crore. Total consolidated assets were Rs 2668 crore, up nearly 11% year-on-year.
Among its subsidiaries, ICICI Lombard General Insurance’s net profit rose 28.7% to Rs 747 crore. ICICI Prudential AMC also had a stable quarter with a profit of Rs 78.2 crore. ICICI Life’s premium growth has dropped slightly, but its new business (VNB) has increased its value to 24.5%. However, ICICI Securities reported profits fell to Rs 39.1 crore.
Capital adequacy is still strong, with a total ratio of 16.97% and a CET1 ratio of 16.31%, which is much higher than regulatory norms. All in all, the bank seems to be in a solid position, and it enters the rest of the fiscal year.
