Growth in loans and net interest income lifted the profits of ICICI Bank, one of the major private lenders in India, for the quarter that ended in December 2024. Fiscally termed the third quarter of FY2025 by the bank, the period saw ICICI Bank’s net profit jump almost 15 per cent to Rs 11,792 crore, slightly better than market expectations.
The country’s second-largest private lender (when assets are considered) also saw total loans soar by around 14 per cent. Deposits at ICICI Bank grew by more than 14 per cent.
Net interest income, the key factor for lenders, grew more than 9 per cent to Rs 20,371 crore on robust retail demand that the entire sector enjoyed in the last few months of 2024. This translated to demand for loans across Indian lenders.
Despite this, the weak overall market conditions made it difficult for banks to raise deposits enough to meet credit growth. This also affected ICICI Bank, with its net interest margin for the quarter falling to 4.25 per cent from 4.43 per cent a year ago.
Provisions and contingencies fund for ICICI bank became 17 per cent heavier year-on-year, amounting to Rs 1,227 crore. This lift in provisions for bad loans was observed across the sector. Non-performing assets (NPA) ratio stood almost flat at 1.96 per cent at quarter-end.
Total capital and liabilities stood at Rs 20.13 lakh crore on December 31, 2024, for ICICI Bank, matching the total assets.
In contrast, HDFC Bank’s standalone net profit for the same quarter stood at Rs 16,736 crore. Its gross NPA ratio, however, worsened to 1.42 per cent from the previous quarter on bad agricultural loans.
