Mumbai: ICICI Bank has reported a record net profit of Rs 9,648 crore in Q1-2024 – a 39.7% increase from Rs 6,905 crore in Q1-2023.

The jump in profits followed an 18.1% year-on-year growth in total advances to Rs 10,57,583 crore on June 30, 2023. Despite the first quarter being slow for loan growth, the bank’s advances book has grown 4% sequentially.

The bank’s deposits grew 17.9% year on year and 4.9% sequentially to Rs 12,38,737 crore on June 30, 2023. The share of fixed deposits increased, rising 25.8% year on year and 9.8% sequentially to Rs 7,02,511 crore on June 30, 2023.

“We expect the repricing of deposits to continue in the next couple of quarters and the overall decline in net interest margin was expected because of the increase in deposit rates,” said Sandeep Batra, executive director ICICI Bank.

Due to business growth and lending rate increases, the net interest income (NII) rose by 38.0% YoY to Rs 18,227 crore in Q1-2024 from Rs 13,210 crore in Q1-2023. The net interest margin was 4.78% in Q1-2024 compared to 4.01% in Q1-2023 and 4.90% in Q4-2023.Batra said that the bank’s unsecured loan portfolio comprised largely of personal loans and credit cards and was around 12% of its loan book.

“The core principle on which we have built our unsecured book has been on the return of capital. About 85% of the book comprises of salaried customers, and most work with large corporates, MNCs and government, and we are comfortable with the quality,” he said. Batra said that the bank held Rs 13100 crore of contingency provision, 1.2% of total advances.

Non-interest income increased by 12.0% year on year to Rs 5,183 crore in Q1-2024 from Rs 4,629 crore in Q1-2023. Fee income grew 14.1% to Rs 4,843 crore in Q1-2024 from Rs 4,243 crore in Q1-2023. There was a treasury gain of Rs 252 crore in Q1-2024 compared to Rs 36 crore in Q1-2023.

Provisions (excluding tax provision) were Rs 1,292 crore in Q1-2024 compared to Rs 1,144 crore in Q1-2023. With an addition of 174 branches during Q1-2024, the bank had a network of 6,074 branches, 16,731 ATMs, and cash recycling machines on June 30, 2023.

The gross NPA ratio improved by 2.76% on June 30, 2023, compared to 2.81% on March 31, 2023. The net NPA ratio was steady at 0.48% on June 30, 2023, compared to 0.48% on March 31, 2023, and 0.70% on June 30, 2022. The net addition to gross NPAs, excluding write-offs and sales, was Rs 1,807 crore in Q1-2024 compared to Rs 14 crore in Q4-2023. The gross NPA additions were Rs 5,318 crore in Q1-2024 compared to Rs 4,297 crore in Q4-2023.

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