ICICI Bank Q4 Results: Net Profit Soars 17 Per Cent, Asset Quality Of Lender Improves

ICICI Bank posted a 17.4 per cent increase in its net profit after tax on a year-on-year (YoY) basis in its fourth quarter (Q4) earnings on Saturday. It logged a net profit of Rs 10,707.53 crore for the March quarter in the 2023-24 fiscal year (FY24) against a net profit of Rs 9,121.87 crore in the last quarter of the previous fiscal year (FY23).

The bank reported it’s Gross Non-Performing Assets (GNPAs) at Rs 27,961.68 crore for Q4FY24, down from Rs 31,183.70 crore in Q4FY23. It’s Net Non-Performing Assets (NNPAs) were down to Rs 5,377.79 crore in the reported quarter from about Rs 5,155.07 crore in the same period a year earlier. 

The Gross NPA ratio for the bank improved to 2.16 per cent from 2.81 per cent, on a YoY basis. The net NPA for the reporting quarter stood at 0.42 per cent, from 0.48 per cent in the corresponding quarter last year. NPAs are loans or advances issued by the bank that are subject to late repayment or unlikely to be repaid by the borrower in full. 

The net interest income (NII) of the lender stood at Rs 19,093 crore, climbing 8 per cent, against Rs 17,667 crore clocked in the January to March quarter of the last fiscal year. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 

The provision coverage ratio of the lender declined to 80.3 per cent from 82.8 per cent on a YoY basis. Provisions are fixed amounts maintained by the bank to cover probable losses on bad assets.

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The lender reported growth in revenue generated from retail banking, followed by wholesale banking, and other sources. The revenue from retail banking increased to Rs 36,409.82 crore in the quarter under review, from Rs 28,739.34 crore in the corresponding quarter a year earlier.