ICICI Bank, one of India's leading private sector banks, on Saturday announced its Q4FY23 results. The bank reported a 30 percent jump in standalone net profit at Rs 9,122 crore for the quarter ending March 31, 2023. The results have beaten estimates, a CNBC-TV18 poll had estimated the profit growth to come in at 28 percent year-on-year and 8 percent sequentially.
ICICI Bank's net interest income (NII) grew 40 percent to Rs 17,666.8 crore from Rs Rs 12.604.6 crore in the corresponding period a year ago. The street was already anticipating the highest net interest income (NII) growth rate in the last eight years.
Net NPA ratio declined to 0.48 for the fourth quarter from 0.55 percent in Q3FY23. Gross NPA came down at 2.8 percent as compared to 3.1 percent in the previous quarter. CNBC-TV18 poll has estimated it to be at 2.8 percent.
The net interest margin stood at 4.9 percent in the fourth quarter beating estimates and growing 4 percent year-on-year. In the last quarter it was at 4.7 percent.
The lender also recommended a dividend of Rs 8 per share.
"The Board has recommended a dividend of Rs 8 per share (equivalent to dividend of $0.10 per ADS) in line with applicable guidelines. The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course," said the lender in the earnings statement.
In a earnings concall, Sandeep Batra, ED, ICICI Bank said that loan and non-fund based outstanding to performing borrowers rated BB and below reduced to Rs 4,704 crore in Q4 vs Rs 5,581 crore in Q3.
Further he also added that with repo rate near peak, expansion on income side has already taken place and catch up on deposit side will take place. There would probably be a downward bias on margins going forward; this is normal in overall scheme of things.