ICICI Bank Q2 PAT rises 15% to ₹11,746 crore on strong core income growth

Private sector major ICICI Bank on Saturday reported 15 per cent year-on-year (y-o-y) growth in its net profit for Q2FY25 at ₹11,746 crore on the back of strong core income.

The bank’s net interest income (NII)-difference between interest earned and expended — rose 10 per cent y-o-y to ₹20,048 crore. Other income, which includes fees from third party services, dividend from subsidiaries, among others, was up 11 per cent at ₹6,496 crore.

Net interest margin of ICICI Bank, a key indicator of banks’ profitability, moderated 9 basis points sequentially to 4.27 per cent on higher cost of funds.

• Also read: Yes Bank Q2 Results: Net profit surges 145% year-on-year to ₹553 crore, with NII rising 14%

“Our expectation of near term NIM is that they will broadly be stable until the rate cut cycle starts, where there will obviously be a lag between floating rate loans which reprice much faster than fixed rate deposit base,” said ICICI Bank ED Sandeep Batra during a post earnings conference.

Stable asset quality

Unlike mid-sized private lenders, who reported sharp rise in delinquencies from unsecured credit segment in Q2, ICICI Bank’s asset quality was largely stable.Its gross and net non-performing asset ratio (GNPA, NNPA) reduced to 1.97 per cent and 0.42 per cent in Q2FY5, respectively, from 2.15 per cent and 0.43 per cent a quarter ago. The bank’s unsecured book comprises largely of personal loan and credit cards and forms 14 per cent of overall advances.