ICICI Bank Q1 net profit grows 14.6% to ₹11,059 crore

ICICI Bank Ltd. reported Q1 FY25 net profit grew 14.6% year-on-year (YoY) to ₹11,059 crorebeating estimates led by treasury gains and other income.

Net interest income (NII) of the private sector bank for June quarter rose 7.3% YoY to ₹19,553 crore, the bank said in a filing.

Net interest margin was 4.36% when compared with 4.78% in Q1 FY24.

The retail loan portfolio grew 17.1% YoY comprising 54.4% of the total loan portfolio. Including non-fund outstanding, the retail portfolio was 46.3% of the total portfolio, Sandeep Batra, Executive Director, ICICI Bank said on a conference call.

“We are comfortable with the asset quality andour strategy is to grow in a risk calibrated manner,” he said adding risks from unsecured loans are “within our threshold.”

The business banking portfolio grew 35.6% YoY, SME business, comprising borrowers with a turnover of less than ₹250 crore grew 23.5% YoY, while the rural portfolio grew 16.9%. The domestic corporate portfolio grew 10.3% on year.

Deposit rise 15%

Total advances rose 15.7% YoY to ₹12,23,154 crore, while deposits rose 15.1% to ₹14,26,150 crore. The bank said gross non-performing assets (NPA) was ₹28,719 crore compared with ₹31,822 YoY.

Net NPA grew to ₹5,685 crore from ₹5,382 crore in the same period last year.

The gross NPA additions were ₹5,916 crore in Q1 FY25 compared with ₹5,318 crore in the year-earlier period. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹3,292 crore compared with ₹3,511 crore in Q1 FY24. 

The net additions to gross NPAs, excluding write-offs and sale, were ₹2,624 crore in the June quarter, compared with ₹ 1,807 crore in the year-earlier period.

The bank during the quarter had written off gross NPAs amounting to ₹1,753 crore compared with ₹1,169 crore a year ago. The provisioning coverage ratio on NPAs was 79.7% at Q1 FY25.

Provisions

The bank holds provisions of ₹863 crore against these borrowers under resolution. It continues to hold contingency provisions of ₹13,100 crore.

Loan and non-fund-based outstanding to performing corporate and SME borrowers rated BB and below was ₹5,286 crore at the end of June quarter compared with ₹5,528 crore sequentially. Loan and non-fund based outstanding at ₹5,286 crore included ₹572 crore to borrowers under resolution.

Including profits for Q1-FY25, the bank’s total capital adequacy ratio was 16.63% and CET-1 ratio was 15.92% against the minimumregulatory requirements of 11.7% and 8.2% respectively.