ICICI Bank Q4 result: Net profit up 17% to Rs 10,708 cr, NIM down 4.40%
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Private lender ICICI Bank’s net profit rose 17.4 per cent to Rs 10,708 crore in the fourth quarter of fiscal 2023-24 (Q4FY24) on the back of growth in net interest income and advances.
Subsequently, net profit grew 4.24 percent from Rs 10,272 crore in the third quarter of fiscal 2023-24.
The lender’s net interest income (NII) rose 8.1 per cent from Rs 17,667 crore to Rs 19,093 crore. However, net interest margin (NIM) fell to 4.40 percent in the quarter under review, compared to 4.90 percent a year earlier. Subsequently, NIM stood at 4.43 percent in the third quarter of FY24.
Non-interest income, excluding government bonds, rose 15.7 percent year-on-year (year-on-year) to Rs 5,930 crore in the quarter under review, compared to Rs 5,127 crore in the year-ago period. Fee income rose 12.5 percent year-on-year to Rs 5,436 crore from Rs 4,830 crore during the period.
The lender’s provisions (excluding tax provisions) fell to Rs 718 crore from Rs 1,619 crore in Q3FY24.
In the December quarter of FY2024, the lender had made provision for alternative investment facilities worth Rs 630 crore. Of which Rs 100 crore has been written back. “We have written back around Rs 100 crore from our provisions to our investments in AIFs. Currently, there is no proposal to invest in AIF,” said Anindya Banerjee, CFO, ICICI Bank.
Total advances rose 16.8 percent year-on-year to Rs 11.84 trillion in Q4FY24. The retail loan portfolio, which constituted 54.9 per cent of the portfolio, grew 19.4 per cent to Rs 6,662.61 crore over the period. Personal loans grew 32.5 percent year-on-year to Rs 1,166.77 crore.
Meanwhile, according to Sandeep Bakhshi, CEO of ICICI Bank, the outstanding amount of NBFCs and HFCs, which constitute 6.5 percent of total loans, stands at around Rs 77,000 crore in the March quarter of FY24, compared to Rs 82,000 crore in the year. ago period.
The lender’s deposits rose 19.6 percent year-on-year to Rs 14.13 trillion as on March 31, 2024. Term deposits rose 27.7 percent year-on-year to Rs 8.17 trillion. The lender’s average current account deposits rose 13 percent and savings account deposits rose 4.6 percent.
The asset quality of improved gross non-performing assets (GNPA) ratio declined from 2.30 percent as on December 31, 2023 to 2.16 percent as on March 31, 2024. The net NPA ratio stood at 0.42 percent as on March 31, 2024, as compared to 0.44 percent on December 31, 2023.
NPA recoveries and upgrades, excluding write-offs and sales, stood at Rs 3,918 crore, compared to Rs 5,351 crore in the quarter ended December 31, 2023.
The company plans to raise funds by issuing debt securities, including through non-convertible debentures (NCDs) in domestic markets up to Rs 25,000 crore and issuance of debentures, notes or offshore certificates of deposit in overseas markets up to $1.50 billion for a period of one year. years from the date on which the decision was adopted by the board.
The board has also approved buyback of debt securities within limits. The bank’s overall capital adequacy ratio at the end of March 31, 2024 was 16.33 percent and the CET-1 ratio was 15.60 percent.
Also, the lender has recommended a dividend of Rs 10 per share, which is subject to approval by shareholders at the subsequent Annual General Meeting (AGM).
First print: April 27, 2024 | 9:36 PM IST