ICICI Bank’s Q3 net up 23.6% to Rs 10,272 crore

Net interest margin (NIM) – the difference between the interest income earned and the interest paid – declined to 4.43 per cent in the October-December 2023 quarter from 4.65 per cent in the year-ago period. The gross NPA (non-performing asset) stood at 2.3 per cent in Q3 FY24 compared to 3.07 per cent in the same quarter of last year. The net NPA ratio was at 0.44 per cent at December 31, 2023 compared to 0.55 per cent at December 31, 2022.

The net additions to gross NPAs, excluding write-offs and sale, were Rs 363 crore. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 5,351 crore and the bank wrote off gross NPAs amounting to Rs 1,389 crore in Q3 FY24.

Provisions (excluding provision for tax) stood at Rs 1,050 crore in the reporting quarter compared to Rs 2,257 crore last year. In Q3 FY24, provisions included Rs 627 crore on investments in Alternate Investment Funds (AIF) as per the RBI’s December notification.

Last month, the RBI directed banks, NBFCs and other lenders not to invest in any scheme of alternative investment funds (AIFs) which has downstream investments in a debtor company.

The regulator said regulated entities (RE) should liquidate its investment in the scheme within 30 days from the date of such downstream investment by the AIF. In case the REs were not able to liquidate their investments within the prescribed time limit, they will have to make a 100 percent provision on such investments, RBI said.

The net domestic advances grew by 18.8 per cent year-on-year. The retail loan portfolio grew by 21.4 per cent. Total period-end deposits increased by 18.7 per cent year-on-year to Rs 13,32,315 crore.