Shares of ICICI Bank are expected to remain in focus today after the lender reported a 14.5% increase in its standalone net profit for the September quarter, reaching Rs 11,746 crore compared to Rs 10,261 crore in the same period last year.
Key Highlights of Q2FY25
The bank’s net interest income (NII) saw a year-on-year increase of 9.5%, rising to Rs 20,048 crore in Q2FY25 from Rs 18,308 crore in Q2FY24. However, the net interest margin was reported at 4.27% for Q2FY25, a slight decline from 4.36% in Q1FY25 and 4.53% in Q2FY24.
Core operating profit also showed positive growth, increasing by 12.1% YoY to Rs 16,043 crore in Q2FY25. Excluding dividend income from subsidiaries and associates, core operating profit grew by 13.4% YoY.
Deposits and Loan Growth Better than Expected
ICICI Bank reported average deposits growth of 15.6% YoY, amounting to Rs 14,28,095 crore as of September 30, 2024. The average current account and savings account (CASA) ratio stood at 38.9% for Q2FY25. The domestic loan portfolio experienced a robust growth of 15.7% YoY, reaching Rs 12,43,090 crore as of the same date.
Asset Quality and Capital Adequacy
The bank’s net NPA ratio was recorded at 0.42% as of September 30, 2024, a slight improvement from 0.43% on June 30, 2024. The provisioning coverage ratio on non-performing loans was 78.5% at the end of Q2FY25.
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Including profits for the six months ended September 30, 2024, ICICI Bank’s total capital adequacy ratio stood at 16.66%, with a CET-1 ratio of 15.96% on a standalone basis.
Non-Interest Income Jumps Nearly 11%
Non-interest income, excluding treasury activities, rose by 10.8% year-on-year to Rs 6,496 crore in Q2FY25, compared to Rs 5,861 crore in Q2FY24. This growth highlights the bank’s ability to enhance revenue streams beyond traditional interest income.
Additionally, fee income showed robust growth, increasing by 13.3% YoY to Rs 5,894 crore in Q2FY25, up from Rs 5,204 crore in the same quarter last year. Notably, fees from retail, rural, and business banking customers accounted for approximately 78% of total fees in Q2FY25, underscoring the bank’s strong performance in these segments.
Brokerages on ICICI Bank
Macquarie on ICICI Bank
In its latest report on ICICI Bank, Macquarie has maintained an outperform rating with a target price of Rs 1,350.
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