ICICI Bank reported robust financial performance for the second quarter of the fiscal year 2023-24 (Q2) on Saturday. The bank witnessed impressive year-on-year growth, with a 35.7 percent increase in standalone profit and a 24 percent rise in net interest income. This remarkable performance was accompanied by a significant reduction in bad loan provisions.
The Mumbai-based bank's standalone profit surged to Rs 10,261 crore for the quarter, marking a substantial increase from the Rs 7,557.84 crore reported in the same period the previous year, as disclosed in its BSE filing.
Furthermore, the net profit of Rs 10,261, representing a 36 percent year-on-year growth, surpassed the expectations of analysts, who had estimated it to be Rs 9,422 crore in Q2, reflecting a 25 percent year-on-year growth.
The bank reported that the total income for the second quarter of the current fiscal year surged to Rs 40,697 crore, a significant increase from Rs 31,088 crore during the same period the previous year. The bank's interest earnings also displayed notable improvement, rising to Rs 34,920 crore from Rs 26,033 crore in the corresponding quarter of September 2022.
Furthermore, the bank's net interest income (NII) experienced a substantial year-on-year growth of 24 percent, reaching Rs 18,308 crore for the quarter, up from Rs 14,787 crore in the same quarter a year ago. Simultaneously, the net interest margin increased to 4.53 percent, in contrast to 4.31 percent during the same period the previous year.
ICICI Bank's asset quality demonstrated improvement as gross non-performing assets (NPAs) decreased to 2.48 percent of gross advances by the end of the September quarter, down from 2.76 percent a year ago. Similarly, its net NPAs, or bad loans, decreased to 0.43 percent compared to 0.61 percent in the year-ago period.
However, the bank's capital adequacy ratio declined to 16 percent from 16.93 percent as of the end of September 2022. On a consolidated basis, the bank's profit surged by 36 percent to Rs 10,896 crore in the quarter, a significant increase from Rs 8,007 crore reported a year ago.
On October 20, ICICI Bank's shares closed 0.28 percent lower at Rs 932.45 apiece on the BSE.