Mumbai: ICICI Bank, a leading private sector bank, has reported a 37% YoY growth in its net profit in Q2-2023. Core operating profit grew 24% YoY to ₹ 11,765 crore in Q2-2023. The bank reported a 26% YoY jump in net interest income (NII) to ₹ 14,787 crore in Q2 2023, while net interest margin (NIM) increased to 4.31% from 4.00% a year ago.
Sandeep Bakhshi, MD & CEO, ICICI BankThe researchers’ call states, “We aim to grow operating capital gains in a risk-adjusted manner by focusing on ecosystems and micro-markets. We will work as a team, facilitating a cross-functional partnership to tap into key customers and market segments to achieve 360-degree coverage and grow share of wallet.”
Total loan portfolio for ICICI Bank grew 23% YoY. The retail loan portfolio grew by 25% YoY comprising 54% of the total loan portfolio as on 30 September 2022. Commercial banking portfolio grew by 43% YOY and small and medium enterprises (comprising borrowers with loans below 250 crores) by 27% YoY. Domestic corporate portfolio and rural portfolio grew by 23% YoY and 12% YoY respectively. Gross advances were 23% YOY and 5% higher to ₹ 938,563 crore as on 30 September 2022.
Advances in Deposits:
The bank’s average current and savings account (CASA) grew by 16% YoY in Q2-2023 and the average CASA ratio was 45.0% in Q2-2023. Term deposits grew 11% YoY from ₹ 582,168 crore and total deposits grew 12% YoY to ₹ 1,090,008 crore as on 30 September 2022. The bank has 5,614 branches and 13,254 ATMs as of September 2022.
Sandeep Bakhshi added, “We continue to enhance our digital offerings and platforms in a seamless manner to onboard new customers and provide them with end-to-end digital journeys and customized solutions. These platforms also enable us to transact and scale up.”
80 lakh account holders of iMobile Pay, a super app that offers payment and banking services to non-ICICI bank account holders, has been activated. Total transactions via iMobile Pay increased 4.4 times and Scan to Pay transactions by value of IICCI non-bank customers increased 22.4 times over Q2 2023.
Being the market leader in electronic billing through FASTag, ICICI Bank has achieved a 20% YoY growth in collections and a market share of about 31% by value in Q1-2023.
In Q2-2023, the value of transactions on the bank’s mobile app InstaBIZ for businesses grew by 23% YoY. InstaBIZ has approximately 195,000 registrations from non-IICCI bank account holders and the bank has acquired 85,300 new bank accounts registered for savings on InstaBIZ till September 30, 2022.
The bank has created more than 20 industry-specific STACKs that provide digital solutions for corporate clients and their ecosystems. The Bank’s Trade Online and Trade Emerging platforms enable customers to digitize their trade currencies and foreign exchange transactions. About 70% of trade volume was conducted digitally in Q2 of this year, and the value of transactions through these platforms rose 70% YoY in Q2 of this year.
In Q2-2023, the value of credit card usage grew by 4% and 43% YoY. The bank has issued more than 3.5 million Amazon Pay credit cards since launch.
ICICI Bank’s asset quality further improved with recoveries and upgrades increasing and NPA accruals falling during the quarter. Gross NPA ratio as on June 30, 2022; 3.41% in 2022 and down to 4.82% on September 30, 2021. Net NPA ratio as on September 30; By 2022, it has fallen to 0.30% to 0.61%. 2022 and 0.99% Sept. 30; 2021.
Support coverage ends September 30; 80.6% in 2022, compared to 79.6% in the previous quarter. Total core funding for all borrowers, excluding NPAs, was up from ₹ 7,376 crore in the last quarter as of September 30; By 2022, it has declined to ₹ 6,713 crore.
Sandeep Bakhshi of ICICI Bank said, “Technology; people We will continue to invest in distribution and brand building. We focus on building a culture where every employee at the bank serves customers with humility and upholds the values of the ICICI brand.”
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