ICICI Bank announced its financial results for the third quarter ending December 31, 2022 (Q3FY23) period on Saturday. The bank beats street expectations by garnering a net profit of ₹8,311.85 crore in Q3 of the current fiscal compared to a profit of ₹6,193.81 crore recorded in the same quarter a year ago, registering a growth of a whopping 34.19% year-on-year. While gross NPA in the Q3FY23 dipped further, however, provisions scaled up during the quarter.
ICICI Bank‘s Q3 PAT rose by 9.97% from ₹7,557.84 crore in September 2022 quarter.
Net interest income, meanwhile, soared by a robust 34.6% to ₹16,465 crore in Q3FY23, compared to ₹12,236 crore in same the quarter of the previous fiscal. NII was up by 11.35% from ₹14,786.81 crore in the preceding quarter.
Net interest margin also increased to 4.65% in Q3 of the current fiscal compared to 3.96% in Q3FY22 and 4.31% in Q2FY23.
Meanwhile, provisions and contingencies in the current quarter scaled up to ₹2,257.44 crore as against ₹2,007.30 crore in Q3FY22 and ₹1.644.52 crore in Q2 of FY23. ICICI Bank highlighted that during Q3, it changed its provisioning norms on nonperforming assets to make them more conservative. This change resulted in higher provisions amounting to ₹1,196 crore in Q3-2023. Provisions for Q3-2023 also include a contingency provision of ₹1,500 crore made on a prudent basis.
In terms of asset quality, gross NPA dropped to 3.07% as of December 31, 2022, from 3.19% as of September 30, 2022, and 4.13% as of December 31, 2021. The net NPA ratio declined to 0.55% in Q3FY23 from 0.61% in Q2FY23 and 0.85% in Q3FY22.
During Q3FY23, ICICI Bank made net additions of ₹1,119 crore to gross NPAs which is higher than ₹605 crore in the previous quarter. The overall gross NPA additions were at ₹5,723 crore in Q3FY23 versus ₹4,366 crore in Q2FY23. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹4,604 crore in Q3 of FY23 versus ₹3,761 crore in Q2-2023. Whereas the gross NPAs written-off in Q3-2023 was at ₹1,162 crore. The provisioning coverage ratio on NPAs was 82.0% as of December 31, 2022.
In terms of credit growth, ICICI Bank’s retail loan portfolio jumped by 23.4% YoY and comprised 54.3% of the total loan book in Q3FY23. The business banking portfolio climbed by 37.9% YoY, while, the SME portfolio comprising borrowers with a turnover of less than ₹250 crore soared by 25% YoY. The domestic corporate portfolio was up 18.2% YoY, rural portfolio surged 12.5% YoY. Bank’s domestic advances were up 21.4% YoY.
Overall, the total advances advanced by 19.7% YoY and 3.8% QoQ to ₹974,047 crore.
Furthermore, regarding deposits, the bank posted 14.2% YoY growth in period-end term deposits. Average current account and savings account deposits increased by 10.4% YoY in Q3. Total deposits stood at ₹11,22,049 crore increasing by 10.3% YoY in Q3FY23.
Under digital and payments platforms, ICICI Bank said, there have been around 86 lakh activations from non-ICICI Bank account holders on its mobile banking app, iMobile Pay by end of December 31, 2022. Also, about 215,000 registrations from non-ICICI Bank account holders were made on InstaBIZ till December 31, 2022.
Also, the value of the Bank’s merchant-acquiring transactions through UPI grew by 10.6% sequentially and 78% year-on-year in Q3-2023. The Bank had a market share of 30.6% by value in electronic toll collections through FASTag in Q3-2023, with a 22.2% year-on-year growth in collections.
ICICI Bank opened about 300 branches in nine months of FY23. That being said, it has an overall network of 5,718 branches and 13,186 ATMs as of December 31, 2022.
On BSE, ICICI Bank shares closed at ₹870.40 apiece on Friday up 0.47%. The bank is the fourth largest company in terms of market share on the exchange. As of January 20, the bank’s valuation stood over ₹6.07 lakh crore.
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