Private Lender ICICI Bank Net profit rises over 35% to Rs 10,261 cr in Q2FY24

Profit before tax excluding treasury grew by 35.7% year-on-year to Rs 13,731 crore (US$ 1.6 billion) in Q2-2024 from Rs 10,121 crore (US$ 1.2 billion) in the quarter ended September 30, 2022 (Q2-2023)

Private Lender ICICI Bank Net profit rises over 35% to Rs 10,261 cr in Q2FY24

Performance Review: Quarter ended September 30, 2023

  • Profit before tax excluding treasury grew by 35.7% year-on-year to Rs 13,731 crore (US$ 1.6 billion) in the quarter ended September 30, 2023 (Q2-2024)
  • Core operating profit grew by 21.7% year-on-year to Rs 14,314 crore (US$ 1.7 billion) in Q2-2024
  • Profit after tax grew by 35.8% year-on-year to Rs 10,261 crore (US$ 1.2 billion) in Q2-2024
  • Total period-end deposits grew by 18.8% year-on-year to Rs 12,94,742 crore (US$ 155.9 billion) at September 30, 2023
  • Average current account and savings account (CASA) ratio was 40.8% in Q2-2024
  • Domestic loan portfolio grew by 19.3% year-on-year to Rs 10,74,206 crore (US$ 129.4 billion) at September 30, 2023
  • Net NPA ratio declined to 0.43% at September 30, 2023 from 0.48% at June 30, 2023
  • Provision coverage ratio on non-performing assets was 82.6% at September 30, 2023
  • Including profits for the six months ended September 30, 2023 (H1-2024), total capital adequacy ratio was 17.59% and Tier-1 capital adequacy ratio was 16.86% on a standalone basis at September 30, 2023

The Board of Directors of ICICI Bank Limited at its meeting held at Mumbai today, approved the standalone and consolidated accounts of the Bank for the quarter ended September 30, 2023 (Q2-2024). The statutory auditors have conducted a limited review and have issued an unmodified report on the standalone and consolidated financial statements for the quarter ended September 30, 2023.

Profit & loss account

Profit before tax excluding treasury grew by 35.7% year-on-year to Rs 13,731 crore (US$ 1.6 billion) in Q2-2024 from Rs 10,121 crore (US$ 1.2 billion) in the quarter ended September 30, 2022 (Q2-2023)

The core operating profit grew by 21.7% year-on-year to Rs 14,314 crore (US$ 1.7 billion) in Q2-2024 from Rs 11,765 crore (US$ 1.4 billion) in Q2-2023; excluding dividend income from subsidiaries/associates, core operating profit grew by 22.9% year-on-year in Q2-2024

Net interest income (NII) increased by 23.8% year-on-year to Rs 18,308 crore (US$ 2.2 billion) in Q2-2024 from Rs 14,787 crore (US$ 1.8 billion) in Q2-2023

The net interest margin was 4.53% in Q2-2024 compared to 4.31% in Q2-2023 and 4.78% in Q1-2024. The net interest margin was 4.65% in H1-2024

Non-interest income excluding treasury increased by 14.0% year-on-year to Rs 5,861 crore (US$ 706 million) in Q2-2024 from Rs 5,139 crore (US$ 619 million) in Q2-2023

Fee income grew by 16.2% year-on-year to Rs 5,204 crore (US$ 627 million) in Q2-2024 from Rs 4,480 crore (US$ 539 million) in Q2-2023. Fees from retail, rural, business banking and SME customers constituted about 78% of total fees in Q2-2024

Provisions (excluding provision for tax) were Rs 583 crore (US$ 70 million) in Q2-2024 compared to Rs 1,644 crore (US$ 198 million) in Q2-2023

There was a treasury loss of Rs 85 crore (US$ 10 million) in Q2-2024, similar to Q2-2023

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The profit before tax grew by 36.0% year-on-year to Rs 13,646 crore (US$ 1.6 billion) in Q2-2024 from Rs 10,036 crore (US$ 1.2 billion) in Q2-2023

The profit after tax grew by 35.8% year-on-year to Rs 10,261 crore (US$ 1.2 billion) in Q2-2024 from Rs 7,558 crore (US$ 910 million) in Q2-2023

Growth in digital and payments platforms

There have been more than one crore activations of iMobile Pay by non-ICICI Bank account holders at end-September 2023.

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ICICI Bank’s Merchant STACK offers an array of banking and value-added services to retailers, online businesses and large e-commerce firms such as digital current account opening, instant overdraft facilities based on point-of-sale transactions, connected banking services and digital store management, among others. The value of the Bank’s merchant acquiring transactions through UPI grew by 69.5% year-on-year and 13.9% sequentially in Q2-2024. The Bank had a market share of about 30% by value in electronic toll collections through FASTag in Q2-2024, with a 15.4% year-on-year growth in collections in Q2-2024.

The Bank has created more than 20 industry-specific STACKs which provide bespoke and purpose-based digital solutions to corporate clients and their ecosystems. The Bank’s Trade Online and Trade Emerge platforms allow customers to perform most of their trade finance and foreign exchange transactions digitally. The Bank’s digital solutions integrate the export transaction lifecycle with bespoke solutions providing a frictionless experience to the clients and simplify customer journeys. About 71% of trade transactions were done digitally in Q2-2024. The volume of transactions done through Trade Online and Trade Emerge platforms in Q2-2024 grew by 29.7% year-on-year.

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