ICICI Bank Q4: From Interest Income, Provisions, To Asset Quality, Key Highlights Of The Quarter

The bank's stock will be in focus on Monday after the Q4 earnings.

1. Net profit:

In Q4FY23, ICICI Bank core operating profit (profit before provisions and tax, excluding treasury income) grew by 36.4% year-on-year to ₹ 13,866 crore. It's profit after tax grew by 30.0% year-on-year to ₹ 9,122 crore from ₹7,018 crore in the corresponding quarter last year.

2. Top-line front:

Net interest income (NII) which is the difference between interest earned less interest expended, in Q4FY23, jumped by 40.2 per cent year-on-year to ₹17,667 crore from ₹12,605 crore in Q4FY22. The net interest margin (NIM) was 4.90 percent in Q4-2023 compared to 4.00 percent in Q4-2022.

The total standalone income for the reporting quarter was up by nearly 32% YoY at ₹36,108.88 crore. It was at ₹27,412.32 crore in Q4FY22. Non-interest income, excluding treasury income, increased by 11.3% year-on-year to ₹ 5,127 crore in Q4FY2023 from ₹ 4,608 crore in Q4-FY022

3. Advances:

The domestic advances grew by 20.5% year-on-year and 5.% sequentially at March 31, 2023. Total advances increased by 18.7% year-on-year and 4.7% sequentially to ₹ 1,019,638 crore at March 31, 2023.

4. Retail loans:

The lender’s retail loan portfolio grew by 22.7 percent YoY and comprised 54.7 percent of the total loan portfolio at March 31, 2023.

The business banking portfolio grew by 34.9 percent YoY on March 31, 2023, while small medium enterprises (SME) business grew by 19.2 percent YoY.

ICICI Bank's rural portfolio grew by 13.8 percent YoY and 5.5 percent sequentially at March 31, 2023.

5. Deposits:

The bank witnessed healthy growth in terms of total deposits which came in at at ₹11.8 lakh crore from ₹10.6 lakh crore, a YoY growth of 10.9 percent.

The lender’s average current and savings account (CASA) ratio was 43.6 percent in the March 2023 quarter.

6. Asset quality:

ICICI Bank's gross NPA ratio declined to 2.81 percent for the fourth quarter of the fiscal year 2022-23, from 3.60 percent last year.

The net NPA ratio declined to 0.48 percent from 0.76 percent last year.

The net non-performing assets declined by 25.9% year-on-year and 8.8% sequentially to ₹ 5,155 crore at March 31, 2023. The net addition from gross NPAs, excluding writeoffs and sale, were ₹ 14 crore in Q4FY2023 compared to ₹ 1,119 crore in the quarter ended December 31, 2022 (Q3FY2023).

7. Capital adequacy

The Bank’s total capital adequacy ratio at March 31, 2023 was 18.34% and Tier1 capital adequacy was 17.60% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.

8. Dividend:

The bank's board recommended a dividend of ₹8 per equity share having a face value of Re 2 each. The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course.