ICICI Bank Q2 Results: Net Profit Rises 5% to Rs 12,359 Crore
ICICI Bank, one of India’s largest private sector banks, reported a 5% year-on-year rise in net profit for the September quarter to Rs 12,359 crore, compared with Rs 11,746 crore a year earlier, according to its notification to the exchanges on Saturday.
Key Highlights of ICICI Bank Q2 Results
- Net interest income increased 7% to Rs 21,529 crore from Rs 20,048 crore in the same period last year.
- Net profit up 5.2% to Rs 12,359 crore versus Rs 11,746 crore (year-on-year)
- Net interest income rises 7% to 21,529 crore versus Rs 20,048 crore (year-on-year)
- Gross NPA ratio at 1.58% vs 1.67% (quarter-on-quarter)
- Net NPA ratio at 0.39% vs 0.41% (quarter-on-quarter)
Analysis of ICICI Bank Q2 Results
At 5.2% year-on-year growth, this was the weakest on year growth for net profit since the September quarter of fiscal 2020. Analysts, however, have said that the September quarter is an inflection point for banks, and improvement is expected starting December.
ICICI Bank’s return on assets, on an annualised basis, fell to 2.36% from the previous quarter’s 2.44%. Advances grew over 10% year-on-year to Rs 14.1 lakh crore, while total deposits jumped 7.7% in the same period to Rs 16.12 lakh crore as on Sept. 30.
The company’s net interest margin fell four basis points to 4.30% for the September quarter compared to the previous three months’ 4.34%. To learn more about net interest margin and its impact on banking stocks, visit our website.
Outlook for ICICI Bank
In a post-earnings media call, the company said it expects advances growth and retail loan growth to improve in the second half of the current fiscal. The bank also expects its net interest margin to be range bound in coming quarters and expects very little impact on NIM if the central bank cuts repo rate further.
The bank also added that it doesn’t see any impact on corporate lending from US tariffs. For more information on corporate lending and its trends, click here.
ICICI Prudential Asset Management Company Performance
The profit after tax for the company’s IPO-bound concern ICICI Prudential Asset Management Company was Rs 835 crore, marking a 20% year-on-year increase. To know more about ICICI Prudential Asset Management Company, visit our website.
Conclusion
ICICI Bank’s Q2 results were largely in line with expectations, with a 5% rise in net profit and a 7% increase in net interest income. The bank’s outlook for the second half of the fiscal year is positive, with expected improvements in advances growth and retail loan growth.
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