ICICI Bank has reported 15% growth in net profit at Rs 11059.11 crore for the quarter ended June 2024 (Q1FY2025). The bank has posted 7% growth in net interest income (NII), while the core fee income of the bank also improved 13% in Q1FY2025. The Net Interest Margin (NIM) of the bank declined to 4.36% in Q1FY2025 compared to 4.78% in the corresponding quarter of previous year.

On business front, the bank as has posted 15% growth in business with strong 16% surge in loan book. The asset quality of the bank was stable in Q1FY2025. Bank has maintained steady credit to deposit ratio at 85.8% at end June 2024 from 85.4% at end June 2023. CASA ratio of the bank has declined to 40.9% at end June 2024 from 43.3% at end June 2023.

Asset quality stable: The bank has maintained stable asset quality in Q1FY2025.

The fresh slippages of loans stood at Rs 5916 crore in Q1FY2025 compared with 5139 crore in previous quarter and Rs 5318 crore in the corresponding quarter last year.

The recoveries and upgradations of NPAs was at Rs 3292 crore and the write-off of loans was at Rs 1753 crore in Q1FY2025.

The standard restructured loan book of the bank stood at Rs 1872 crore end June 2024 compared to Rs 2084 crore a quarter ago.

Provision coverage ratio was steady at 79.70% at end June 2024 compared to 80.30% a quarter ago and 82.40% a year ago.

The capital adequacy ratio of the bank stood at 16.0% with Tier I ratio at 15.2% at end June 2024. Including profits for Q1FY2025, the Bank's total capital adequacy ratio end June 2024 was 16.63% and CET-1 ratio was 15.92% compared to the minimum regulatory requirements of 11.70% and 8.20% respectively.

The risk weighted assets of the bank has increased 23% YoY to Rs 1421990 crore end June 2024,

Asset Quality Indicators: ICICI Bank
'	Jun-24	Mar-24	Dec-23	Sep-23	Jun-23	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	28718.63	27961.68	28774.63	29836.94	31822.39	3	-10
Net NPA (Rs Crore)	5684.79	5377.79	5378.48	5046.47	5381.77	6	6
% Gross NPA	2.15	2.16	2.30	2.48	2.76	-1	-61
% Net NPA	0.43	0.42	0.44	0.43	0.48	1	-5
% PCR	79.70	80.30	80.70	82.60	82.40	-60	-270
% CRAR - Basel III	15.96	16.33	14.61	16.07	16.71	-37	-75
% CRAR - Tier I - Basel III	15.24	15.60	13.94	15.35	16.00	-36	-76
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Healthy business growth: The business of the bank has increased 15% YoY to Rs 2649304 crore end June 2024, driven by 16% surge in advances to Rs 1223154 crore. Deposits rose 15% to Rs 1426150 crore at end June 2024.

CASA deposits ratio declines: The CASA deposits of the bank increased 9% YoY to Rs 583671 crore at end June 2024. The current account deposits increased 9% to Rs 176028 crore, while saving account deposits also moved up 9% to Rs 407643 crore end June 2024. The CASA ratio declined to 40.9% at end June 2024 compared to 43.3% at end June 2023, while easedfrom 42.2% a quarter ago. The term deposits have increased 20% to Rs 842479 crore end June 2024.

Strong loan growth: Advances growth was driven by retail loans rising 17% YoY to Rs 682343 crore at end June 2024, while credit to agriculture increased 17% to Rs 105880 crore and MSME 31% to Rs 164011 crore at end June 2024. The corporate credit has increased 10% to Rs 266304 crore end June 2024. The overseas credit rose 7% to Rs 34567 crore end June 2024.

Investment book of the bank increased 19% YoY to Rs 475256 crore at end June 2024. The SLR book moved up 13% to Rs 379437 crore, while non SLR book jumped 51% to Rs 95819 crore at end June 2024.

Margins ease: The bank has showed 53 bps YoY jump in cost of deposits to 4.84%, while yield on advances declined 6 bps YoY to 9.80% in Q1FY2025. Thus, the NIM has dipped 42 bps YoY, while fell 4 bps qoq to 4.36%

Branch expansion: The bank has added 64 branches and reduced 88 ATMs in Q1FY2025, taking overall tally to 6587 branches and 17102 ATM`s end June 2024.

Book value of the bank stood at Rs 354.3 per share at end June 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 346.0 per share at end June 2024.

Quarterly Performance

NII rises on strong loan growth: Bank has recorded 17% increase in the interest earned at Rs 38995.78 crore, while interest expenses increased 29% to Rs 19442.87 crore in Q1FY2025. NII improved 7% to Rs 19552.91 crore in the quarter ended June 2024.

Healthy growth in the core fee income: Bank has posted strong 13% growth in core fee income to Rs 5490 crore, while the treasury income zoomed 143% to Rs 613 crore and dividend income galloped 207% to Rs 894 crore, boosting up the overall non-interest income by 29% to Rs 7001.92 crore in the quarter ended June 2024.

Expenses ratio improves: The operating expenses of the bank increased 11% to Rs 10529.99 crore, as other expenses moved up 9% to Rs 6159.48 crore, while employee expenses increased 13% to Rs 4370.51 crore in Q1FY2025. Cost to income ratio declined to 39.7% in Q1FY2025 compared with 40.2% in Q1FY2024, helping the Operating Profit to increase 13% to Rs 16024.84 crore.

Provisions and contingencies up marginally: The bank has showed 3% rise in provisions to Rs 1332.18 crore.

Effective tax rate declined to 24.7% in Q1FY2025 from 24.9% in Q1FY2024. Net Profit rose by 15% YoY to Rs 11059.11 crore during quarter ended June 2024.

Consolidated Performance:

The consolidated profit after tax increased 10.0% yoy to Rs 11,696 crore in Q1FY2025 from Rs 10,636 crore in Q1FY2024. Consolidated assets grew by 18.0% yoy to Rs 24,07,395 crore end June 2024 from Rs 20,39,897 crore' end June 2023.

Key subsidiaries and associates

The annualised premium equivalent of ICICI Prudential Life Insurance (ICICI Life) increased by 34.4% yoy to Rs 1,963 crore in Q1FY2025 from Rs 1,461 crore in Q1FY2024. Value of New Business (VNB) of ICICI Life increased to Rs 472 crore in Q1FY2025 from Rs 438 crore in Q1FY2024. The VNB margin was 24.0% in Q1FY2025 compared to 24.6% in FY2024. The profit after tax increased to Rs 225 crore in Q1FY2025 from Rs 207 crore in Q1FY2024.

The Gross Direct Premium Income (GDPI) of ICICI Lombard General Insurance Company (ICICI General) increased by 20.4% yoy to Rs 7,688 crore in Q1FY2025 from Rs 6,387 crore in Q1FY2024. The combined ratio stood at 102.3% in Q1FY2025 compared to 103.8% in Q1FY2024. The profit after tax of ICICI General increased by 48.7% to Rs 580 crore in Q1FY2025 from Rs 390 crore in Q1FY2024.

The profit after tax of ICICI Prudential Asset Management Company, as per Ind AS, increased to Rs 633 crore in Q1FY2025 from Rs 474 crore in Q1FY2024.

The profit after tax of ICICI Securities, on a consolidated basis, as per Ind AS, increased to Rs 527 crore in Q1FY2025 from Rs 271 crore in Q1FY2024.

Financial Performance FY2024:

Bank has posted 28% increase in net profit to Rs 40888.27 crore in the year ended March 2024 (FY2024). The net interest income increased 20% to Rs 74305.72 crore, while non-interest income moved up 16% to Rs 22957.77 crore, pushing up net total income by 19% to Rs 97263.49 crore in FY2024. The operating expenses increased 19% to Rs 39132.73 crore, while provision and contingencies dipped 45% to Rs 3642.93 crore, allowing profit before tax to increase 28% to Rs 54487.83 crore in FY2024. The cost-to-income ratio was steady at 40.2% in FY2024 compared to 40.1% in FY2023. An effective tax rate rose slightly to 25.0% in FY2024 compared to 24.8% in FY2023. The net profit has increased 28% to Rs 40888.27 crore in FY2024.

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ICICI Bank: Results
Particulars	2406 (3)	2306 (3)	Var %	2403 (12)	2303 (12)	Var %
Interest Earned	38995.78	33327.61	17	142890.94	109231.34	31
Interest Expended	19442.87	15101.15	29	68585.22	47102.74	46
Net Interest Income	19552.91	18226.46	7	74305.72	62128.60	20
Other Income	7001.92	5435.25	29	22957.77	19831.45	16
Net Total Income	26554.83	23661.71	12	97263.49	81960.05	19
Operating Expenses	10529.99	9522.59	11	39132.73	32873.24	19
Operating Profits	16024.84	14139.12	13	58130.76	49086.81	18
Provisions & Contingencies	1332.18	1292.44	3	3642.93	6665.58	-45
Profit Before Tax	14692.66	12846.68	14	54487.83	42421.23	28
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	14692.66	12846.68	14	54487.83	42421.23	28
Provision for tax	3633.55	3198.48	14	13599.56	10524.73	29
PAT	11059.11	9648.20	15	40888.27	31896.50	28
EPS*(Rs)	62.9	54.8	'	58.1	45.3	'
Adj BV (Rs)	346.0	287.7	'	325.0	274.1	'
* Annualized on current equity of Rs 1407.66 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Database

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