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ICICI Bank Profit Soars 20% Amidst Margin Pressures
17 Oct
Summary
- Net profit rose 20% year-on-year to ₹14,843 crore.
- Net interest income increased 18%, but NIM compressed.
- Anticipates further margin dip in Q3 due to deposit costs.
ICICI Bank announced a significant 20% year-on-year increase in its second-quarter net profit, achieving ₹14,843 crore. This performance was bolstered by an 18% growth in net interest income.
Despite the profit surge, the bank's net interest margin saw a reduction, declining to 4.18% from 4.36% in the preceding quarter. This compression is attributed to substantial mobilization of foreign currency non-resident bank (FCNR-B) deposits and investments in expanding its branch network.
Looking ahead, ICICI Bank expects continued pressure on its net interest margin in the third quarter. This projection stems from the full impact of FCNR-B deposit mobilization not yet being realized, alongside ongoing branch expansion costs. The bank successfully garnered $18 billion in FCNR-B deposits.
Overall advances for ICICI Bank grew by 30% year-on-year, while deposits increased by 27%. The lender also observed an improvement in asset quality, with its gross non-performing assets ratio falling to 1.20%.
