ICICI Bank Q3FY23 PAT grows 34% to Rs 8,312 cr, NII surges by 35% to Rs 16,465 cr

Core operating profit (profit before provisions and tax, excluding treasury income) grew by 31.6% year-on-year to Rs 13,235 crore (US$ 1.6 billion) in the quarter ended December 31, 2022 (Q3FY23)

Total period-end deposits grew by 10.3% year-on-year to Rs 11,22,049 crore (US$ 135.6 billion) on December 31, 2022.

The average current account and savings account (CASA) ratio was 44.6% in Q3FY23.

Overall loan portfolio grew by 19.7% year-on-year while the domestic loan portfolio grew by 21.4% year-on-year.

Net NPA (NNPA) ratio declined to 0.55% at December 31, 2022 from 0.61% at September 30, 2022.

Provisioning coverage ratio on non-performing assets was 82.0% at December 31, 2022.

Including profits for the nine months ended December 31, 2022 (first nine months of FY23), total capital adequacy ratio was 18.33% and Tier-1 capital adequacy ratio was 17.58%, on a standalone basis, at December 31, 2022.

The core operating profit (profit before provisions and tax, excluding treasury income) increased by 31.6% year-on-year to Rs 13,235 crore (US$ 1.6 billion) in Q3-2023 from Rs 10,060 crore (US$ 1.2 billion) in the quarter ended December 31, 2021 (Q3FY22).

Net interest income (NII) increased by 34.6% year-on-year to Rs 16,465 crore (US$ 2.0 billion) in Q3FY23 from Rs 12,236 crore (US$ 1.5 billion) in Q3FY22.

The net interest margin was 4.65% in Q3FY23 compared to 3.96% in Q3FY22 and 4.31% in the quarter ended September 30, 2022 (Q2-2023). The net interest margin was 4.33% in the first nine months of FY23.

Non-interest income, excluding treasury income, increased by 1.8% year-on-year to Rs 4,987 crore (US$ 603 million) in Q3FY23 from Rs 4,899 crore (US$ 592 million) in Q3FY22.

Fee income grew by 3.7% year-on-year to Rs 4,448 crore (US$ 538 million) in Q3-2023 from  Rs 4,291 crore (US$ 519 million) in Q3FY22.

Fees from retail, rural, business banking and SME customers constituted about 78% of total fees in Q3FY23.

There was a treasury gain of Rs 36 crore (US$ 4 million) in Q3FY23 compared to Rs 88 crore (US$ 11 million) in Q3FY22.

Provisions (excluding provision for tax) increased by 12.5% year-on-year to Rs 2,257 crore (US$ 273 million) in Q3FY23 from Rs 2,007 crore (US$ 243 million) in Q3-2022.

During the quarter, the bank has changed its provisioning norms on non-performing assets to make them more conservative.

This change resulted in higher provisions amounting to Rs 1,196 crore in Q3FY23. Provisions for Q3FY23 also include a contingency provision of Rs 1,500 crore (US$ 181 million) made on a prudent basis.

The profit before tax grew by 35.3% year-on-year to Rs 11,014 crore (US$ 1.3 billion) in Q3FY23 from  Rs 8,141 crore (US$ 984 million) in Q3FY22.

On a standalone basis, the profit after tax grew by 34.2% year-on-year to Rs 8,312 crore (US$ 1.0 billion) in Q3FY23 from Rs 6,194 crore (US$ 749 million) in Q3FY22.

On a standalone basis, the profit after tax grew by 39.5% year-on-year to Rs 22,775 crore (US$ 2.8 billion) in the first nine months of FY23 from  Rs 16,321 crore (US$ 2.0 billion) in the first nine months of FY23.