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View Promises →Icicibank Ltd — Q3 FY24
ICICI Bank reported a strong Q3 FY24 with PAT growing 23.6% YoY to ₹102.72 billion, driven by robust loan growth of 18.5% YoY and stable asset quality.
bullish
high
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ICICI Bank reported a strong Q3 FY24 with PAT growing 23.6% YoY to ₹102.72 billion, driven by robust loan growth of 18.5% YoY and stable asset quality. Core operating profit rose 10.3% YoY to ₹146.01 billion, while NIM compressed to 4.43% due to lagged deposit repricing. Management expects further NIM moderation in Q4 but at a slower pace. Retail and SME loans grew 21.4% and 27.5% YoY respectively, while personal loan growth moderated after tightening credit parameters. Contingency provisions remain high at ₹131 billion (1.1% of loans). Key risk: continued margin compression from deposit repricing and competitive intensity in lending.
ICICI बैंक ने तीसरी तिमाही में शानदार नतीजे दिए। मुनाफा पिछले साल के मुकाबले 23.6% बढ़कर 10,272 करोड़ रुपये हो गया। इसकी वजह कर्ज देने में 18.5% की बढ़ोतरी और कर्ज की गुणवत्ता स्थिर रहना है। बैंक की मुख्य कमाई 10.3% बढ़ी, लेकिन ब्याज दरों में कमी आई क्योंकि जमा पर ब्याज देर से बदला गया। आने वाली तिमाही में ब्याज दरों में और कमी हो सकती है, लेकिन धीमी गति से। छोटे और मझोले कारोबारियों को दिए गए कर्ज में 21.4% और 27.5% की बढ़ोतरी हुई। पर्सनल लोन की बढ़त धीमी हुई क्योंकि बैंक ने कर्ज देने के नियम कड़े कर दिए। बैंक ने मुश्किल समय के लिए 13,100 करोड़ रुपये अलग रखे हैं। मुख्य चिंता: जमा पर ब्याज बढ़ने से मुनाफा कम हो सकता है और कर्ज देने में प्रतिस्पर्धा बढ़ रही है।
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Risk Intelligence
Margin compression from deposit repricing
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Read Transcript →Quarter Snapshot
Domestic Loan Growth
18.8%
+18.8% YoY
Domestic loan portfolio grew 18.8% YoY, driven by retail (21.4%) and SME (27.5%) segments.
Net Interest Margin
4.43%
-22bps YoY
NIM declined 22bps YoY to 4.43% due to lagged impact of rising deposit costs.
CASA Growth
5.3%
+5.3% YoY
Average CASA deposits grew 5.3% YoY, though CASA ratio moderated due to faster term deposit growth.
Personal Loan Growth
37.3%
+37.3% YoY
Personal loan growth slowed sequentially to 6.4% as bank tightened credit and raised pricing.
What Changed vs Last Quarter
NEW
Headcount additions to moderate
Employee additions will not continue at the pace of previous 4-5 quarters; Q3 saw only 1,700 additions vs ~10,000 in H1.
NEW
Personal loan growth to moderate further
Growth in personal loans may continue to moderate from current levels due to tighter credit parameters and pricing actions.
UPDATED
Full-year NIM expected similar to last year
Management expects FY24 NIM to be similar to FY23, implying further compression in Q4 but at a lower pace than Q3.
DROPPED
Continued branch expansion
The bank added 174 branches in Q2 and 350 in H1, with plans to continue expanding based on micro-market opportunities.
DROPPED
Technology investment at ~9% of opex
Technology expenses were about 9.2% of operating expenses in H1, and the bank will continue investing in technology, people, and distribution.
NEW RISK
KCC portfolio NPA seasonality
Gross NPA additions from Kisan Credit Card portfolio were ₹6.17 billion in Q3, with higher additions typical in Q1 and Q3 each fiscal year.
RISK GONE
Competitive pressure on loan pricing
Management acknowledged intense competition across mortgages, personal loans, and corporate lending, which could pressure yields.
RISK GONE
Regulatory penalty on cross-selling
RBI imposed a fine for non-compliance related to cross-selling of non-financial products in 2020-21; corrective actions taken.
Fast read
Guidance and risk preview
Management expects FY24 NIM to be similar to FY23, implying further compression in Q4 but at a lower pace than Q3.
NIM declined 22bps YoY to 4.43% and may compress further in Q4 as deposit costs continue to rise, albeit at a slower pace.
View Risks →