ICICI Bank Q4FY23 results: PAT rises by 30% to ₹9,122 Cr, NII grew by 40.2%

ICICI Bank has declared its Q4FY23 earnings today. The bank recorded a consolidated net income of ₹53,922.75 Cr during Q4FY23, up by 25.88% YoY from ₹42,834.06 Cr during Q4FY22. ICICI Bank said its net expenses stood at ₹38,716.56 Cr during the quarter ended March 2023 as against ₹31,306.02 Cr during the same quarter of the previous financial year. 

The bank's operating profit (Profit before provisions and contingencies) stood at ₹15,206.19 Cr during the quarter under review, up by 31.90% YoY from ₹31,306.02 Cr during the year-ago quarter.

The consolidated net profit of ICICI Bank reached ₹9,122 Cr during Q4FY23, up by 30% from ₹7018.71 Cr in Q4FY22. The EPS of ICICI Bank in Q4FY23 reached ₹13.84 as compared to ₹10.88 stood in the year-ago quarter.

ICICI Bank said its total deposits grew by 10.9% year-on-year to ₹1,180,841 crore (US$ 143.7billion) during March 31, 2023 quarter and the average CASA ratio was 43.6% in Q4-2023. The domestic loan portfolio grew by 20.5% year-on-year and the net NPA ratio declined to 0.48% during Q4FY23 from 0.55% in Q3FY23.

The bank said its provision coverage ratio on non-performing assets was 82.8% and total capital adequacy ratio was 18.34% and Tier-1 capital adequacy ratio was 17.60% on a standalone basis during Q4FY23. ICICI Bank said its gross NPA ratio declined to 2.81% from 3.07% in Q3FY23 and the net non-performing assets declined by 25.9% year-on-year and 8.8% sequentially to ₹5,155 crore during Q4FY23.

Net interest income (NII) grew by 40.2% year-on-year to ₹17,667 crore in Q4-2023 from ₹12,605 crore in Q4-2022. The bank said the core operating profit (profit before provisions and tax, excluding treasury income) increased by 36.4% year-on-year to ₹13,866 crore in Q4-2023 from ₹10,164 crore in the quarter ended March 31, 2022 (Q4-2022).

By March 31, 2023, the retail loan portfolio, which made up 54.7% of the overall loan portfolio, had grown by 22.7% YoY and 5.4% sequentially. By March 31, 2023, the retail portfolio represented 45.7% of the overall portfolio, including non-fund outstanding. By March 31, 2023, the business banking portfolio grew by 7.8% sequentially and 34.9% annually.

“The Board has recommended a dividend of ₹8 per share (equivalent to dividend of US$ 0.10 per ADS) in line with applicable guidelines. The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course,” said ICICI Bank in a stock exchange filing.

ICICI Bank said its Board of Directors have approved “Fund raising by way of issuances of debt securities including by way of nonconvertible debentures in domestic markets upto an overall limit of ₹250.00 billion by way of private placement and issuances of bonds/notes/offshore certificate of deposits in overseas markets upto USD 1.50 billion in single/multiple tranches for a period of one year, from the date of passing of resolution by the Board. The Board also authorised buyback of debt securities within the limits prescribed under applicable law.”

Board of ICICI Bank also re-appointed M S K A & Associates, Chartered Accountants and KKC & Associates LLP, Chartered Accountants as joint statutory auditors of the Bank to hold office from the conclusion of the 29th AGM till the conclusion of the 30th AGM, subject to the approval of Members and RBI.

Commenting on the Q4FY23 earnings of ICICI Bank, A R Ramachandran, Co-founder & Trainer-Tips2trades said "Strong growth in NII coupled with good net profit growth and steady reduction in NPA indicates a good Q4FY23 results performance by ICICI Bank. Technically, 901 is a strong resistance on the Daily charts. Investors can buy if Daily close is above 901 for targets of 917-958 in the near term. Support will be at 880."

ICICI Bank said with an addition of about 480 branches during FY2023, it had a network of 5,900 branches, 16,650 ATMs/cash recycling machines during Q4FY23.