Money

ICICI Bank Reports Strong Q3 Earnings with 14.8% Profit Growth, Highlights Resilience Amid Economic Challenges


ICICI Bank has recently announced impressive financial results for the third quarter of the fiscal year 2024-25, highlighting a robust performance that reflects its resilience in a competitive banking landscape.

As of January 25, 2025, the bank reported a net profit after tax (PAT) of ₹11,792 crore, marking a 14.8% increase compared to the same period last year when it stood at ₹10,272 crore.

This growth surpassed analysts’ expectations, which had estimated the profit at around ₹11,332 crore.

Financial Highlights

  • Net Interest Income (NII): The bank’s NII rose to ₹20,370.6 crore, reflecting a 9.1% increase year-on-year. However, the net interest margin slightly decreased to 4.25% from 4.43% in Q3 FY24.
  • Total Income: ICICI Bank reported total income of ₹48,368 crore, up from ₹42,792 crore in the previous year.
  • Deposit Growth: Total deposits grew by 14.1% year-on-year, reaching ₹15.20 trillion, indicating strong customer confidence and effective deposit mobilization strategies.

Asset Quality and Provisions

The bank’s asset quality remained largely stable, with the gross non-performing assets (NPA) ratio improving to 1.96%, down from 2.3% a year ago.

The net NPA ratio also saw a slight decrease to 0.42% from 0.44%. Despite this positive trend, provisions for bad loans increased to ₹1,227 crore, up from ₹1,049 crore in the previous year.

Strategic Insights

During an earnings call, ICICI Bank’s management emphasized their commitment to maintaining a balance between growth and asset quality.

The bank is focusing on optimizing its cost structure while investing in technology and branch expansion to enhance operational efficiency.

The CFO also addressed concerns regarding provisioning and credit costs, assuring stakeholders that these remain stable across both retail and corporate portfolios.

Market Reaction

Following the announcement of these results, ICICI Bank’s shares closed at ₹1,209.45 on January 25, reflecting a modest increase of 0.58%.

Analysts remain optimistic about the bank’s future prospects given its strong fundamentals and strategic initiatives aimed at sustaining growth.

In summary, ICICI Bank’s Q3 earnings underscore its robust operational performance and effective risk management strategies amidst challenges in the broader economic environment.

With continued focus on innovation and customer service, the bank is well-positioned for future growth as it navigates the evolving landscape of Indian banking.

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