ICICI Bank posts 37% rise in Q2 profit on higher net interest income

Due to higher net interest income and lower provisions, ICICI Bank on Saturday reported a standalone net profit of 7,558 crore for the September quarter of FY23

Shayan Ghosh
Published22 Oct 2022, 07:44 PM IST
ICICI Bank posts 37% rise in Q2 profit on higher net interest income
ICICI Bank posts 37% rise in Q2 profit on higher net interest income

ICICI Bank on Saturday reported a standalone net profit of 7,558 crore in the September quarter of FY23, up 37.1% from the same period last year, owing to higher net interest income (NII) and lower provisions.

Its net interest income (NII), the difference between interest earned and interest expended, rose 26.5% year-on-year (y-o-y) to 14,787 crore in the Q2 of FY23. Net interest margin (NIM), a key measure of profitability, expanded 30 basis points (bps) sequentially to 4.31%. On the other hand, the bank’s net provisions were down 39.4% y-o-y to 1,644 crore.

“We have got our overall risk framework and anything which falls within this, we are happy to grow,” said Sandeep Batra, executive director, ICICI Bank.

ICICI Bank’s provision coverage ratio, which is a measure of the funds set aside to cover bad loans, increased to 80.6% at the end of the September quarter of FY23, from 79.6% in the previous quarter.

The private sector lender saw improvement in asset quality as its gross non-performing assets (NPAs) as a percentage of gross advances declined 22 bps sequentially to 3.19% and the net NPA ratio stood at 0.61%, down 9 bps from the June quarter.

Gross additions to bad loans stood at 4,366 crore, down from 5,578 crore in the same period last year. Of the fresh additions in the quarter, 3,658 crore originated from its retail, rural and business banking portfolio.

The bank’s total loan book grew 22.7% y-o-y to 9.39 trillion, with retail loans growing at 24.6% to 5.07 trillion.

“Given the tightening of liquidity, the incremental growth will largely be a function of deposit growth and borrowings that we may do. We will be focused on this in a risk-calibrated fashion and whatever falls within that framework, we will continue to grow,” said Batra.

Total deposits of ICICI Bank increased 11.5% y-o-y 10.9 trillion as on 30 September. Average current account savings account (CASA) deposits ratio was at 45% in Q2 FY23, up 90 bps from the same period last year.

“We are very comfortable on liquidity. At this point of time, we are pretty comfortable and we do not see deposit growth to be a constraint,” said Batra.

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:22 Oct 2022, 07:44 PM IST
Business NewsCompaniesCompany ResultsICICI Bank posts 37% rise in Q2 profit on higher net interest income

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Indian Oil Corporation share price

    138.10
    01:51 PM | 4 NOV 2024
    -6.9 (-4.76%)

    Tata Steel share price

    146.75
    01:51 PM | 4 NOV 2024
    -2.95 (-1.97%)

    Reliance Industries share price

    1,294.80
    01:51 PM | 4 NOV 2024
    -44.3 (-3.31%)

    ICICI Bank share price

    1,274.40
    01:51 PM | 4 NOV 2024
    -17.6 (-1.36%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Federal Bank share price

    206.55
    01:50 PM | 4 NOV 2024
    2.3 (1.13%)

    City Union Bank share price

    177.50
    01:50 PM | 4 NOV 2024
    -0.35 (-0.2%)

    UTI Asset Management Company share price

    1,349.00
    01:49 PM | 4 NOV 2024
    -11.25 (-0.83%)

    Jubilant Pharmova share price

    1,252.70
    01:50 PM | 4 NOV 2024
    -11.3 (-0.89%)
    More from 52 Week High

    Poly Medicure share price

    2,941.10
    01:50 PM | 4 NOV 2024
    -221.6 (-7.01%)

    PVR Inox share price

    1,480.80
    01:50 PM | 4 NOV 2024
    -94.6 (-6%)

    Vodafone Idea share price

    7.95
    01:50 PM | 4 NOV 2024
    -0.5 (-5.92%)

    Emami share price

    678.10
    01:49 PM | 4 NOV 2024
    -38.7 (-5.4%)
    More from Top Losers

    Fine Organic Industries share price

    5,116.35
    01:48 PM | 4 NOV 2024
    274.25 (5.66%)

    Gillette India share price

    10,484.45
    01:50 PM | 4 NOV 2024
    522.65 (5.25%)

    Rainbow Childrens Medicare share price

    1,611.30
    01:49 PM | 4 NOV 2024
    61.7 (3.98%)

    Firstsource Solutions share price

    352.30
    01:50 PM | 4 NOV 2024
    12 (3.53%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,415.000.00
      Chennai
      80,421.000.00
      Delhi
      80,573.000.00
      Kolkata
      80,425.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      101.03/L0.23
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts