ICICI Bank reported a 20.1% year-on-year increase in net profit to ₹14,843 crore for the September quarter, outperforming expectations on the back of strong core income growth and lower provisions. According to cnbctv18.com, the lender beat poll estimates despite margin pressures that affected the wider banking sector.
The Bottom Line
- Net profit grew 20.1% year-on-year to reach ₹14,843 crore for the September quarter.
- Net interest income rose 17.7% to ₹25,339 crore, supported by robust loan book expansion.
- Net interest margin moderated to 4.18%, reflecting sector-wide yield compression.
Core Income and Provisions Drive Profit Growth
Strong performance in core lending activities underpinned the quarterly results. Net interest income (NII), which measures the core earnings generated from loans, rose 17.7% to ₹25,339 crore compared to ₹21,529 crore in the same period last year. This outpaced poll estimates that had pegged NII at ₹24,811 crore, according to reporting by CNBC-TV18.
Profitability received an additional lift from lower provisioning requirements. Provisions fell sharply by 32.5% quarter-on-quarter to ₹851 crore. Meanwhile, the bank reported a treasury loss of ₹230 crore for the quarter, shifting from a gain of ₹151 crore in the June quarter and a gain of ₹220 crore a year earlier.
Margin Pressures and Asset Quality Trends
Despite the profit expansion, core profitability metrics showed signs of moderation. Net interest margin (NIM) slipped to 4.18% in the September quarter, down from 4.36% in the June quarter and 4.30% in the corresponding period of the previous year. Excluding interest earned on a tax refund in the prior quarter, the bank’s NIM contracted by 10 basis points.
| Financial Metric | September Quarter | Previous / Year-Ago Period |
|---|---|---|
| Net Interest Income (NII) | ₹25,339 crore (+17.7% YoY) | ₹21,529 crore |
| Gross NPA Ratio | 1.20% | 1.38% (previous quarter) |
| Net Interest Margin (NIM) | 4.18% | 4.30% (year-ago) |
Asset quality metrics improved on a sequential basis. The gross non-performing asset (GNPA) ratio eased to 1.20%, compared to 1.38% in the preceding quarter. Gross NPA additions stood at ₹4,833 crore, down from ₹5,034 crore a year earlier, while recoveries and upgrades reached ₹3,620 crore. The bank maintained a provisioning coverage ratio of 75% on non-performing loans as of September 30, as noted by CNBC-TV18.
Deposit Growth and Leadership Continuity
Expansion across balance sheet items remained robust. Total period-end deposits grew 27.1% year-on-year to ₹20.50 lakh crore. When foreign currency non-resident (FCNR) deposits are excluded, deposit growth registered at 17%. The total loan portfolio expanded by 30% to reach ₹18.32 lakh crore.
Ahead of the earnings release, ICICI Bank shares closed at ₹1,396.80 on the BSE, marking a 0.13% gain. In corporate governance updates, the bank has approached the Reserve Bank of India (RBI) for approval to extend Pradeep Kumar Sinha’s tenure as non-executive part-time chairperson from July 1, 2027, to February 16, 2029.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
