Sandeep Bakhshi: We will focus on maintaining a strong balance sheet with prudent provisioning and healthy capital

Mumbai: ICICI Bank, one of the leading private lenders, demonstrated remarkable year-on-year growth, registering a robust 14.6% surge in standalone profit, reaching ₹11,059 crore in the quarter ended June, 2024. The net interest income experienced a notable 7.3% increase, reaching ₹19,553 crore during the period.

The bank's Gross NPA slipped to 2.15% in Q1 FY25 compared to 2.76% in Q1 FY24, alongside the net NPA ratio was 0.43% in Q1FY25, compared to 0.48% in the year-ago period. The bank has marked a 2.36% return on assets (ROA) and also recorded an equity (ROE) of 18% in this quarter.

The capital position of the bank continued to be strong with a CET-1 ratio of 15.92% and a total capital adequacy ratio of 16.63% as on June 30, 2024.

Sandeep Bakhshi, MD & CEO, ICICI Bank said, “Our strategic focus continues to be on growing profit before tax excluding treasury through the 360o customer-centric approach and by serving opportunities across ecosystems and micro markets. We believe our focus on customer 360o, extensive franchise, and collaboration within the organisation, backed by our focus on enhancing delivery systems and simplifying processes will enable us to deliver holistic solutions to customers in a seamless manner and grow market share across key segments".

Rise in deposit:

Bank's deposit portfolio showed a robust growth, with total period-end deposits increasing by 15.1% year-on-year to ₹14,26,150 crore in Q1 FY25. Period-end term deposits, which constitute 59.1% of the total deposits, rose by 19.9% year-on-year and 3.1% sequentially as of June 30, 2024. The bank’s average liquidity coverage ratio for the quarter was approximately 123%. The average current account and savings account (CASA) ratio stood at 39.6% in Q1 FY25, reflecting the bank's success in nurturing low-cost deposits.

Loan Growth:

In Q1 FY25, ICICI Bank's overall loan portfolio grew by 15.7% year-on-year. The retail loan portfolio, making up 54.4% of the total, increased by 17.1% year-on-year and sequentially. The net domestic loan portfolio saw a growth of 15.9% year-on-year and 3.3% sequentially this quarter. Significant growth was observed in the business banking portfolio, which expanded by 35.6% year-on-year, and the SME business grew by 23.5% year-on-year. The rural portfolio rose by 16.9%, and the domestic corporate portfolio grew by 10.3% year-on-year as of June 30, 2024.

“We will continue to make investments in technology, people, distribution, and building our brand. We will remain focused on maintaining a strong balance sheet with prudent provisioning and healthy levels of capital", added Sandeep Bakhshi.

Digital initiatives:

The bank has successfully issued 1.73 crore credit cards as on June 30, 2024. The bank’s co-branded credit card, ICICI Bank Amazon Pay Card, crossed the milestone of on-boarding 50 lakh customers. The total value of partner-to-merchant digital transactions through ICICI Bank stood at ₹2,93,752 crore, representing a 51.6% year-on-year increase, giving the bank an 18.5% market share in this segment. Additionally, the bank commands a 32.1% market share by value in electronic toll collections through FASTag, with a 16.9% year-on-year growth in Q1 FY25.

ICICI Bank offers a unique feature called ‘Dream Car Search,’ a one-stop solution to assist customers in their car-buying journey. To prevent cyber fraud, the bank has launched an industry-first initiative called ‘SmartLock,’ which empowers customers to instantly lock or unlock key banking services such as UPI, debit cards, and credit cards with just one click on iMobile Pay.

Sustainable Financing and ESG initiatives:

ICICI Bank has made significant strides in its Environmental, Social, and Governance (ESG) initiatives, reflecting its commitment to sustainable financing and social responsibility. In 2023-24, the bank worked towards Corporate Social Responsibility (CSR) activities across four areas namely livelihood, environment, health, and social interventions, positively impacting over 1.28 crore individuals.

Further, ICICI Bank continues to empower women through its Self Help Group programmes. In the first quarter of FY25, the bank provided credit facilities to 2,52,438 women via 23,279 SHG loans, reinforcing its commitment to social equity and financial inclusion.

Disclaimer: The above is a featured article.