The private bank reported a standalone net profit of Rs 10,272 crore ($1.24 billion) for quarter ended Dec. 31, compared to Rs 8,312 crore last year | Photo: Bloomberg
India’s ICICI Bank reported better-than-expected third-quarter profit on Saturday, helped by robust loan growth, although its net interest margin (NIM) shrank for the fourth straight quarter.
The country’s second-biggest private bank reported a record high standalone net profit of Rs 10,272 crore ($1.24 billion) for the quarter ended Dec. 31, compared to analysts’ expectation of Rs 10,025 crore as per LSEG data.
ICICI’s NIM – the difference between interest obtained on loans and paid on deposits expressed as percentage – came in at 4.43 per cent, compared to 4.65 per cent last year and 4.53 per cent last quarter.
Indian lenders have been reporting double-digit loan growth consistently over the past few months owing to higher demand, but rising deposit costs have squeezed their margins.
Earlier this week, HDFC Bank, India’s biggest private lender, reported weak margins for a second consecutive quarter.
ICICI Bank’s total loans grew by 18.8 per cent on-year, largely led by retail loans, while deposits grew 18.7 per cent.
Its net interest income – the difference between interest earned and paid – rose 13.4 per cent to Rs 18,678 crore.
Asset quality improved, with gross non-performing assets ratio at 2.30 per cent as of end-December versus 2.48 per cent at the end of September.
Shares of ICICI Bank closed 1 per cent higher ahead of the results.
First Published: Jan 20 2024 | 4:11 PM IST
