ICICI Bank shares touch all-time high after stellar Q3 results

ICICI Bank share surge: The shares of ICICI Bank rose 5.02 per cent to an all-time high of Rs 1,059.4 apiece on the NSE, after the announcement of stellar Q3 results. The private lender reported a standalone net profit of Rs 10,271.54 crore for the December quarter, marking a substantial 23.57 per cent YoY increase from Rs 8,311.85 crore in the same period last year.

Profit surge

The bank's Q3 results were in line with analysts' expectations of 19-25 per cent growth, showcasing a robust performance. The standalone net profit for the quarter exceeded expectations, reaching Rs 10,271.54 crore.

Provisions and net interest income

Provisions for the quarter totalled Rs 1,049.37 crore, higher than the previous quarter but lower than the year-ago period. The Net Interest Income (NII) rose by 13.4 per cent YoY to Rs 18,678 crore, meeting street estimates. The Net Interest Margin (NIM) stood at 4.43 per cent, indicating the bank's strong financial position.

Deposit and loan portfolio growth

Deposits witnessed an 18.7 per cent YoY increase, reaching Rs 13,32,315 crore, while the domestic loan portfolio grew by 18.8 per cent to Rs 11,14,820 crore. Various segments, including retail, business banking, SME, and rural, contributed significantly to the credit growth.

Asset quality and NPAs

The gross NPA ratio declined to 2.30 per cent at December 31, 2023, reflecting improved asset quality. The net NPA ratio remained stable at 0.44 per cent, showcasing the bank's effective management of non-performing assets.

Fee income and digital platforms

Fee income for the quarter increased by 19.4 per cent to Rs 5,313 crore, with fees from retail, rural, business banking, and SME customers constituting 79 per cent of total fees. ICICI Bank's digital and payments platforms experienced substantial growth, with more than 1 crore activations on the iMobile Pay app.

Capital adequacy

The bank's total capital adequacy ratio on December 31, 2023, was 16.70 per cent, exceeding the minimum regulatory requirement of 11.70 per cent. The Common Equity Tier-1 (CET-1) ratio was 16.03 per cent.

ICICI Bank's outstanding performance in Q3 has bolstered investor confidence, leading to a surge in share prices. The positive financial indicators and growth across key segments position the bank as a strong player in the financial sector.