Nagaland News Watch

PAT is up 24% as ICICI Bank reports solid results

<p>The nation’s second-largest private lender, ICICI Bank, surprised experts by reporting a 23.6% year-over-year increase in net profit to Rs 10,272 crore in the third quarter of FY24.</p>
<p><img decoding=”async” class=”alignnone wp-image-361811″ src=”” alt=” pat is up 24 as icici bank reports solid results newindianexpress 2024 01 01680c8f” width=”1077″ height=”473″ title=”PAT is up 24% as ICICI Bank reports solid results 3″ srcset=” 576w,×66.jpg 150w” sizes=”(max-width: 1077px) 100vw, 1077px” /></p>
<p>Net interest income (NII) increased by 13.4% to Rs 18,678 crore, which was the basis for the profit. For the quarter, non-net interest income increased 17.5% year over year.</p>
<p>During the quarter, the bank’s net interest margin (NIM), which measures its percentage of net interest revenue from all outstanding loans and advances, decreased by 23 basis points on an annual basis to 4.43%. Additionally, the NIM decreased by 10 basis points sequentially. During the first nine months of the fiscal year, the net interest margin was 4.57%.</p>
<p>Because of the high deposit rates, analysts had predicted that the banks’ NIM would be compressed.</p>
<p>The bank’s asset quality shown improvement over the previous fiscal year, as seen by the gross non-performing assets (NPA) ratio dropping from 2.48% at September 30, 2023, to 2.30% in the third quarter. In comparison to 0.43% in the prior quarter and 0.55% in the same time last year, the net NPA ratio was 0.44% during the current quarter.</p>
<p>According to the bank, net additions to gross non-performing assets (NPAs) in the third quarter, exclusive of write-offs and sales, were Rs 363 crore as opposed to Rs 116 crore in the preceding quarter. Gross non-performing assets (NPAs) increased to Rs 5,714 crore in Q3 from Rs 4,687 crore in Q2.</p>
<p>In Q3, recoveries and upgrades of non-performing assets (NPAs) (apart from write-offs and sales) were Rs 5,351 crore, up from Rs 4,571 crore in Q2. During the quarter, the Bank wrote down gross non-performing assets (NPAs) of Rs 1,389 crore. December 31, 2023, saw an 80.7% provisioning coverage ratio on non-performing assets.</p>
<p>During the quarter, the bank saw a robust 18.8% YoY increase in domestic loans. Domestic credit increased by 3.8% sequentially.</p>
<p>The portfolio of retail loans increased by 4.5% in a row and by 21.4% YoY. The portfolio of business banks expanded by 6.5% consecutively and 31.9% year over year. The SME business, which consists of borrowers with less than Rs 250 crore in revenue, increased by 6.7% sequentially and 27.5% year over year. During the quarter, the rural portfolio expanded by 4.6% sequentially and 18.2% YoY.</p>
<p>During the quarter, deposits rose by 2.9% sequentially and 18.7% year over year to Rs 13.32 lakh crore. During the quarter, average savings account deposits rose by 2.8% YoY, while average current account deposits surged by 11.6% YoY.</p>