During this, Kotak Mahindra Bank Crossed analyst is estimated reports Standalone net profit rose 67% to Rs 3,452 crore in the June quarter. At the consolidated level, profit grew by 51% to Rs 4,150 crore. Another private lender, Yes Bank, said its net profit rose 10.3% to Rs 342 crore.
Net advances grew 18.1% year-on-year to Rs 10,57,583 crore as on June 30, 2023, following a jump in ICICI Bank’s profits. Despite a slow first quarter for loan growth, the bank’s advance book grew 4% sequentially.
The bank’s deposits grew by 17.9% YoY and 4.9% sequentially to Rs 12,38,737 crore. The share of fixed deposits increased, growing 25.8% year-on-year and 9.8% sequentially to Rs 7,02,511 crore.
“We expect deposit revaluation to continue over the next few quarters and an overall decline in net interest margin due to increase in deposit rates,” said Sandeep Batra, executive director, ICICI Bank.
ICICI Bank’s net interest income (NII) grew by 38% YoY to Rs 18,227 crore in Q1-2024 from Rs 13,210 crore in Q1-2023, due to business growth and increase in lending rates. Net interest margin was 4.78% in Q1-2024, compared to 4.01% in Q1-2023 and 4.9% in Q4-2023.
Batra said the bank’s unsecured loan portfolio largely comprises personal loans and credit cards and constitutes about 12% of its loan book. “The core principle on which we have built our unsecured book is on return of capital. About 85% of the book comprises salaried clients, and most deal with large corporate, multinationals and government, and we are comfortable with the quality,” he said. Batra said the bank has a contingency provision of Rs 13,100 crore, which is 1.2% of total advances.
The gross NPA ratio of ICICI Bank improved to 2.76% as on June 30, 2023, as against 2.81% as on March 31, 2023. The net NPA ratio was stable at 0.48% as on June 30, 2023, as against 0.48% as on March 31, 2023 and 0.7% as on June 30, 2022. The net increase in gross NPAs, including pre-write-offs and sales, was Rs 1,807 crore in Q1-2024, as against Rs 14 crore in Q4-2023. The gross NPA addition in Q1-2024 was Rs 5,318 crore, while it was Rs 4,297 crore in Q4-2023.