Stock of ICICI Bank stock opened in green after the lenders announced above expectation result, higher standalone profit and net interest income (NII) and lower provisioning for second quarter of Financial Year 2024.

The profit before tax excluding treasury grew by 35.7% year-on-year to 137.31 billion Rupees in this quarter. The core operating profit grew by 21.7% year-on-year to Rs. 14,314 crore (US$ 1.7 billion) in Q2-2024 from Rs. 11,765 crore (US$ 1.4 billion) in Q2-2023; excluding dividend income from subsidiaries/associates, core operating profit grew by 22.9% year-on-year in Q2-2024. The profit after tax grew by 35.8% year on-year to 102.61 billion Rupees in this quarter.

Net interest income (NII) increased by 23.8% year-on-year to Rs. 18,308 crore (US$ 2.2 billion) in Q2-2024 from Rs. 14,787 crore (US$ 1.8 billion) in Q2-2023. The net interest margin was 4.53% in Q2-2024 compared to 4.31% in Q2-2023 and 4.78% in Q1-2024. The net interest margin was 4.65% in H1-2024. Non-interest income excluding treasury increased by 14.0% year-on-year to Rs. 5,861 crore (US$ 706 million) in Q2-2024 from Rs. 5,139 crore (US$ 619 million) in Q2-2023.

Total deposits grew by 18.8% year-on-year and 4.5% sequentially to Rs. 12,94,742 crore (US$ 155.9 billion) at September 30, 2023. Term deposits increased by 31.8% year-on-year and 9.2% sequentially at September 30, 2023. During the quarter, the average current and savings account deposits grew by 7.1% year-on-year and 1.1% sequentially. The Bank’s average liquidity coverage ratio for the quarter was about 122%. Average current account deposits increased by 14.0% year-on-year in Q2-2024. Average savings account deposits increased by 4.5% year-on-year in Q2-2024. The bank added 174 branches during second quarter, bringing total number of network branches to 6,248 and 16,927 ATMs and cash recycling machines at September 30, 2023.

The mortgage portfolio grew by 16.2% year-on-year and 4.1% sequentially. Auto loans grew by 24.1% year-on-year and 5.5% sequentially. The commercial vehicles and equipment portfolio grew by 12.3% year-on-year and 4.5% sequentially. Personal loans grew by 40.4% year-on-year and 10.2% sequentially and the credit card portfolio grew by 29.5% year-on-year and 6.2% sequentially. The personal loans and credit card portfolio were 9.4% and 3.9% of the overall loan book respectively at September 30, 2023. Overseas loan portfolio as of September 30, 2023, stand at 3.3% of the overall loan book. In US dollar terms, overseas loan portfolio declined by 6.3% year-on-year till recent quarter. The non-India linked corporate portfolio declined by 26.9% or about 115 million US dollars on a year-on-year basis.

The net NPA ratio declined to 0.43% at September 30, 2023 from 0.48% at June 30, 2023 and 0.61% at September 30, 2022. During the quarter, there were net additions of 1.16 billion Rupees to gross NPAs, excluding write-offs and sale. The total provisions during the quarter were 5.83 billion Rupees or 4.1% of core operating profit and 0.2% of average advances. The provisioning coverage ratio on NPAs was 82.6% at September 30, 2023. In addition, the Bank continues to hold contingency provisions of 131.00 billion Rupees or about 1.2% of total loans as of September 30, 2023. The gross NPA additions from the retail, rural and business banking portfolio were 43.64 billion Rupees in the current quarter compared to 50.72 billion Rupees in the previous quarter. The gross NPAs written-off during the quarter were 19.22 billion Rupees. There was sale of NPAs worth 1.79 billion rupees in the current quarter compared to no sale in the previous quarter.

Including profits for the six months ended (H1-2024), the Bank’s total capital adequacy ratio at September 30, 2023 was 17.59% and Tier-1 capital adequacy was 16.86% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.