
Private sector lender ICICI Bank announced its results for the quarter ended March 2024, revealing a 17 percent rise in net profit compared to the same period last year. The bank’s net profit for the January-March quarter of the financial year 2023-24 was Rs 10,707 crore, up from Rs 9,122 crore in the year-ago period.
Improvement in Asset Quality and Key Financial Ratios
ICICI Bank’s asset quality improved during the reporting quarter. The gross non-performing assets (NPA) ratio declined from 2.30 percent at December 31, 2023, to 2.16 percent at March 31, 2024. The net NPA ratio also improved from 0.44 percent at December 31, 2023, to 0.42 percent at March 31, 2024.
Loan Portfolio and Deposits Growth
The bank’s total loans grew by 18.8 percent year-on-year, primarily driven by retail loans. Deposits also saw significant growth, increasing by 18.7 percent.
Retail Loan Portfolio and Business Segments
The retail loan portfolio of ICICI Bank grew by 19.4 percent year-on-year and comprised 54.9 percent of the total loan portfolio as of March 31, 2024. The SME business, which includes borrowers with a turnover of less than Rs 250 crore, grew by 24.6 percent year-on-year. The rural portfolio also saw growth of 17.2 percent.
Provisions and Recoveries
ICICI Bank made provisions and contingencies of Rs 1,707 crore in the fourth quarter of the financial year 2023-24. The recoveries and upgrades of non-performing assets (NPAs) were Rs 3,918 crore in the same quarter.
Key Financial Ratios and Growth
The provisioning coverage ratio on NPAs was 80.3 percent as of March 31, 2024. The net domestic advances grew by 16.8 percent year-on-year and 3.2 percent sequentially on March 31, 2024. The period-end term deposits increased by 27.7 percent year-on-year to Rs 8.17 lakh crore as of March 31, 2024. The average current account deposits increased by 13.0 percent year-on-year in Q4FY24, while average savings account deposits increased by 4.6 percent year-on-year in the same quarter.
But it’s absolutely unethical from the start. No wonder it’s Chairperson was in prison for some time.