ICICI Bank Reports Impressive Q2 Performance: Read Details
ICICI Bank Reports Impressive Q2 Performance: Profits Soar by 35.7% Year-on-Year, Net Interest Income Surges by 24%.
ICICI Bank has reported strong financial results for the second quarter of the fiscal year 2023-24 (Q2). The Mumbai-based bank's standalone profit saw an impressive year-on-year growth, surging to Rs 10,261 crore for the quarter, a substantial increase from the Rs 7,557.84 crore reported in the same period the previous year. This 35.7 percent increase in standalone profit exceeded analyst expectations, which had estimated it to be Rs 9,422 crore for Q2, reflecting a 25 percent year-on-year growth.
In addition to the stellar profit growth, the bank also recorded a remarkable 24 percent surge in net interest income (NII). The total income for the second quarter of the current fiscal year climbed to Rs 40,697 crore, a significant increase from Rs 31,088 crore during the same period the previous year. The bank's interest earnings also displayed notable improvement, rising to Rs 34,920 crore from Rs 26,033 crore in the corresponding quarter of September 2022.
Furthermore, ICICI Bank's net interest income (NII) showed substantial year-on-year growth, reaching Rs 18,308 crore for the quarter, up from Rs 14,787 crore in the same quarter a year ago. Simultaneously, the net interest margin increased to 4.53 percent, in contrast to 4.31 percent during the same period the previous year.
Notably, the bank's asset quality improved, with gross non-performing assets (NPAs) decreasing to 2.48 percent of gross advances by the end of the September quarter, down from 2.76 percent a year ago. Likewise, its net NPAs, or bad loans, decreased to 0.43 percent compared to 0.61 percent in the year-ago period.
However, it's worth mentioning that the bank's capital adequacy ratio declined to 16 percent from 16.93 percent as of the end of September 2022. On a consolidated basis, the bank's profit surged by 36 percent to Rs 10,896 crore in the quarter, a significant increase from Rs 8,007 crore reported a year ago.