ICICI Bank’s standalone net profit rose to Rs 14,843 crore in the second quarter, while advances surged 30% and bad-loan ratios improved despite weaker margins.
ICICI Bank reported a strong second quarter, with standalone net profit rising 20.1% from a year earlier to Rs 14,843 crore, helped by brisk loan growth and lower provisions for bad loans, according to the bank’s results announced on Saturday.
Net interest income, the difference between interest earned and interest paid, climbed 17.7% to Rs 25,339 crore in the July-to-September period. Core operating profit rose 21.8% to Rs 20,805 crore, while profit before tax increased 20.4% to Rs 19,724 crore. The figures were also ahead of market expectations, according to Moneycontrol.
The lender’s margin remained under some pressure. Net interest margin, a closely watched measure of lending profitability, was 4.18% in the quarter, down from 4.30% a year earlier and below 4.36% in the previous quarter. Even so, the bank’s asset quality improved, with the gross non-performing asset ratio easing to 1.20% from 1.58% a year earlier, while the net NPA ratio fell to 0.30% from 0.39%.
Growth in the loan book remained robust. Total advances increased 30% year on year to Rs 18.32 lakh crore at the end of September, while deposits rose 27.1% to Rs 20.50 lakh crore. Excluding foreign currency non-resident deposits, advances rose 24.1% and deposits 17%, underscoring the bank’s continuing expansion in core domestic banking business.
On a consolidated basis, ICICI Bank posted a net profit of Rs 16,333 crore, up 22.3% from a year earlier, while consolidated assets grew 22.6% to Rs 32.93 lakh crore. The results suggest the bank is still benefiting from a combination of credit growth and restrained bad-loan costs, even as margin compression remains a watchpoint for the quarters ahead.
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