Prime Highlights
- ICICI Bank shares climbed over 1% after a stronger-than-expected June quarter, with a beat across NII, profit and asset quality.
- Net profit rose nearly 16% to almost ₹14,800 crore, while gross NPA improved to 1.38%.
Key Facts
- ICICI Bank is one of India’s largest private sector lenders, offering banking and financial services.
- The bank’s capital adequacy ratio stood at 16.84%, with a contingency buffer of ₹13,100 crore.
Background
Shares of ICICI Bank rose over 1% in early trade this week after the private lender posted a stronger-than-expected performance for the June quarter. Analysts described it as the best all-round showing among large private sector banks.
The bank beat estimates across key metrics, including net interest income, pre-provision operating profit and net profit, while keeping asset quality healthy and margins stable. Net interest income grew nearly 13% year-on-year to over ₹24,300 crore, helped by strong loan growth. Pre-provision operating profit rose close to 9% to over ₹20,300 crore, while net profit climbed nearly 16% to almost ₹14,800 crore.
Asset quality improved further, with gross non-performing assets easing from 1.67% a year earlier to 1.38%. Net NPA stood at 0.35%, and the capital adequacy ratio remained strong at 16.84%, leaving room for future growth. The bank reported an annualised return on assets of 2.49% and held a contingency buffer of ₹13,100 crore.
Management noted that asset quality stayed resilient despite seasonal stress in the Kisan Credit Card portfolio. It expects credit costs to settle near 50 basis points and does not foresee a major one-time hit from the upcoming shift to the Expected Credit Loss framework, citing strong provisioning buffers.
Brokerages responded positively. One retained a ‘Buy’ rating and raised its earnings estimates for the coming two financial years, calling the quarter a standout amid sector-wide margin pressure. Another kept a neutral stance but called ICICI Bank the top-performing large private lender of the quarter, highlighting its profitability and deposit momentum. Of 50 analysts tracking the stock, 49 recommend ‘Buy’.
