ICICI Bank Q3 Results Review - Net Interest Margins, Return On Asset At Multi Quarter High: IDBI Capital

IDBI Capital Report

ICICI Bank Ltd.’s (one of our top picks) reported improvement in net interest margins by 34 basis points QoQ to 4.65% led by re-pricing of loans. Credit growth declined to 20% YoY versus 23% YoY (Q2 FY23) as corporate growth declined to 15% YoY versus 22% YoY (Q2 FY23).

Asset quality improved with gross non-performing asset at 3.07% versus 3.2% QoQ led by better recoveries. Also, restructured assets stood at 0.5% versus 0.7% QoQ.

ICICI Bank reported strong profitability growth at 34% YoY led by strong net interest income growth.

During Q3 FY23, NII grew by 35% YoY against a loan growth of 20% YoY; margins improved sequentially. Pre provision operating profit grew by 31% YoY led by lower other income (up 1% YoY). Lower credit costs led by better recoveries resulted in best return ratios in last few years; return on asset at 2.2%.

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