22 July 2023, Mumbai: ICICI Bank, a prominent privately owned financial institution in India, reported a remarkable performance in the first quarter of the fiscal year 2023-24 (Q1FY24) with a significant surge in its standalone net profit. According to a regulatory filing, the bank’s net profit for the quarter reached an impressive Rs 9,648.20 crore, marking a substantial increase of 39.7% compared to the previous year’s corresponding period. In Q1FY23, the bank had registered a net profit of Rs 6,904.94 crore. This remarkable growth in profit reflects the bank’s strong operational performance and strategic financial management during the period under review.
ICICI Bank Records Impressive Total Income of Rs 38,762.86 Crore in Q1FY24
The robust financial performance of ICICI Bank extended beyond its net profit, as the bank also witnessed a significant surge in its total income during the first quarter of the fiscal year 2023-24. The bank reported a total income of Rs 38,762.86 crore for Q1FY24, a substantial increase from the previous year’s corresponding period, where the total income stood at Rs 28,336.74 crore. This surge in total income indicates strong revenue generation and successful execution of the bank’s business strategies amid the evolving economic landscape.
ICICI Bank’s Provision for Bad Loans Increases in Q1FY24
Despite the impressive financial results, ICICI Bank remained proactive in managing potential credit risks during the first quarter of the fiscal year 2023-24. For the period under review, the bank allocated Rs 1,292.44 crore towards provisions, reflecting a slight increase from Rs 1,143.82 crore recorded in the previous corresponding period. This prudent approach towards provisioning showcases the bank’s commitment to maintaining a healthy asset quality and mitigating potential credit risks.
ICICI Bank’s Gross and Net Non-Performing Assets Show Improvement
ICICI Bank’s focus on managing its asset quality was evident from the reduction in both gross and net non-performing assets (NPAs) as of June 30, 2023. The bank’s gross NPAs, which represent loans with a risk of default, stood at Rs 31,822.39 crore, reflecting a decline compared to Rs 33,163.15 crore reported on June 30 last year. Additionally, the bank’s net NPAs, which accounts for the value of bad loans after accounting for provisions, decreased to Rs 5,381.77 crore from Rs 6,656.15 crore on June 30, 2022. These improvements in NPAs signify the bank’s diligent efforts in managing its loan portfolio and strengthening its asset quality.
ICICI Bank showcased a robust performance in the first quarter of the fiscal year 2023-24, with an impressive 39.7% increase in standalone net profit and a substantial growth in total income. Despite economic challenges, the bank remained proactive in managing potential credit risks, which led to a slight increase in provisions. Notably, the reduction in gross and net NPAs reflects the bank’s commitment to maintaining a healthy loan portfolio and reinforces its position as one of India’s leading private sector banks.