ICICI Bank's shares up 2% today: Here we decode why
What's the story
ICICI Bank's shares witnessed a surge of over 2% today, following the lender's announcement of its Q1 results. The bank reported a standalone net profit of ₹12,768 crore for the June quarter, marking a growth of 15.5% from ₹11,059 crore in the same period last year. The positive financial performance has led to an increase in investor confidence and interest in ICICI Bank's stocks.
Financial growth
NII and core operating profit
The bank's Net Interest Income (NII) also witnessed a YoY growth of 10.6% to ₹21,634.46 crore. However, the net interest margin slightly declined from 4.41% in the previous quarter to 4.34%. The core operating profit of ICICI Bank rose by an impressive 13.6% YoY, reaching ₹17,505 crore for the June quarter.
Financial stability
Provisions and average deposits
The provisions (excluding tax) for ICICI Bank increased to ₹1,815 crore from ₹1,332 crore a year ago. The average deposits of the bank also saw an increase of 11.2% YoY to ₹15.33 lakh crore, with the CASA ratio at 38.7%.
Loan growth
Domestic loan portfolio and asset quality
ICICI Bank's domestic loan portfolio grew by 12% YoY to ₹13.31 lakh crore. The bank's asset quality also improved with the gross NPA improving to 1.67% from 2.15% a year ago, and the net NPA standing at 0.41%. The provision coverage ratio remained healthy at 75.3%, indicating that ICICI Bank has managed its assets effectively while continuing to grow its loan book responsibly.