ICICI Bank's Q2 results: Net profit jumps 20.1% to ₹14,843cr
What's the story
ICICI Bank has reported a 20.1% year-on-year increase in its standalone net profit for the second quarter of FY27. The bank's net profit stood at ₹14,843 crore, beating market expectations by a margin of 3.9%. The growth was driven by strong performance in net interest income (NII) and advances, as well as an improvement in asset quality.
Financial performance
NII jumps 17.7% YoY to ₹25,339cr
ICICI Bank's net interest income (NII) also registered a healthy growth of 17.7% YoY to ₹25,339 crore from ₹21,529 crore.
This was higher than the poll estimate of ₹24,811 crore by 2.1%.
The bank's total advances as of September 30 stood at ₹18.32 lakh crore, a whopping 30% increase over the same period last year and a sequential rise of 12.3%.
Asset quality
Gross NPA ratio improves to 1.2%
ICICI Bank's asset quality improved during the quarter with the gross non-performing asset (NPA) ratio declining to 1.20% as of September 30.
This was an improvement from 1.38% at the end of June and 1.58% a year ago.
The net NPA ratio also improved to 0.30%, up from 0.35% sequentially and down from 0.39% a year ago, indicating better management of bad loans by the bank over this period.
Deposit growth
CASA ratio stands at 35.8%
ICICI Bank's total period-end deposits as of September 30 stood at ₹20.50 lakh crore, a growth of 27.1% over the last year.
The average current account and savings account (CASA) ratio stood at 35.8%, reflecting the increase in term deposit base due to FCNR-B deposit inflows.
The bank's total capital adequacy ratio was at 16.68% as of September 30, well above the minimum regulatory requirement of 11.70%.