ICICI Bank board has recommended a dividend of Rs 11 per share for the financial year 2024-25, following a robust financial performance in the fourth quarter. The bank’s board recommended the dividend after reporting a strong 18% year-on-year growth in standalone net profit, which rose to Rs 12,630 crore for the January-March quarter, compared to Rs 10,708 crore in the same period last year.
On a consolidated basis, the net profit increased by 15.7%, reaching Rs 13,502 crore. This growth was supported by a steady rise in lending and healthy net interest income. The bank’s core net interest income (NII) rose 11% year-on-year to Rs 21,193 crore, driven by a 13.3% increase in the loan book and a marginal expansion in the net interest margin (NIM) to 4.41%, up from 4.40% in the year-ago period.
However, the bank signalled that margins may face some pressure in the near term due to anticipated rate cuts by the Reserve Bank of India.
Executive Director Sandeep Batra noted that 53% of the bank’s loan portfolio is linked to the repo rate, and full transmission of lower rates is expected within three months. He also said the bank will continue exploring ways to enhance margins through a refined loan product mix.
Batra highlighted that the bank, like others in the sector, had slowed down on unsecured lending following RBI guidelines. This led to a deceleration in credit card and personal loan growth, impacting overall retail credit momentum. He said retail asset slippages stood at Rs 4,300 crore for the quarter and acknowledged that delinquencies in unsecured loans, which now form 13% of the bank’s book, remained elevated over the past year.
On the deposit side, the share of current and savings accounts (CASA) remained steady at 38.4%, and total deposits grew by 14%. The bank also announced plans to add 400 new branches in the coming year. To align with the changing interest rate environment, ICICI Bank recently cut its savings account rate by 0.25 percentage points.
The bank’s non-interest income, excluding treasury gains, rose 18.4% to Rs 7,021 crore, while provisions for the quarter came in at Rs 891 crore, up from Rs 718 crore a year ago. Asset quality also improved, with the gross non-performing asset (GNPA) ratio falling to 1.67% at the end of March, compared to 1.96% in December 2024.
ICICI Bank’s capital adequacy ratio was strong at 16.55%, with core equity capital (CET-1) at 15.94% as of March 31, 2025, ensuring a solid buffer for future growth and stability.
Among its subsidiaries, the bank’s life insurance arm posted a profit of Rs 1,189 crore, up from Rs 852 crore in the previous year. The general insurance business reported a 30% rise in net profit to Rs 2,508 crore, and the asset management arm saw a 29% increase, with profits reaching Rs 2,651 crore.
On a consolidated basis, the net profit increased by 15.7%, reaching Rs 13,502 crore. This growth was supported by a steady rise in lending and healthy net interest income. The bank’s core net interest income (NII) rose 11% year-on-year to Rs 21,193 crore, driven by a 13.3% increase in the loan book and a marginal expansion in the net interest margin (NIM) to 4.41%, up from 4.40% in the year-ago period.
However, the bank signalled that margins may face some pressure in the near term due to anticipated rate cuts by the Reserve Bank of India.
Executive Director Sandeep Batra noted that 53% of the bank’s loan portfolio is linked to the repo rate, and full transmission of lower rates is expected within three months. He also said the bank will continue exploring ways to enhance margins through a refined loan product mix.
Batra highlighted that the bank, like others in the sector, had slowed down on unsecured lending following RBI guidelines. This led to a deceleration in credit card and personal loan growth, impacting overall retail credit momentum. He said retail asset slippages stood at Rs 4,300 crore for the quarter and acknowledged that delinquencies in unsecured loans, which now form 13% of the bank’s book, remained elevated over the past year.
On the deposit side, the share of current and savings accounts (CASA) remained steady at 38.4%, and total deposits grew by 14%. The bank also announced plans to add 400 new branches in the coming year. To align with the changing interest rate environment, ICICI Bank recently cut its savings account rate by 0.25 percentage points.
The bank’s non-interest income, excluding treasury gains, rose 18.4% to Rs 7,021 crore, while provisions for the quarter came in at Rs 891 crore, up from Rs 718 crore a year ago. Asset quality also improved, with the gross non-performing asset (GNPA) ratio falling to 1.67% at the end of March, compared to 1.96% in December 2024.
ICICI Bank’s capital adequacy ratio was strong at 16.55%, with core equity capital (CET-1) at 15.94% as of March 31, 2025, ensuring a solid buffer for future growth and stability.
Among its subsidiaries, the bank’s life insurance arm posted a profit of Rs 1,189 crore, up from Rs 852 crore in the previous year. The general insurance business reported a 30% rise in net profit to Rs 2,508 crore, and the asset management arm saw a 29% increase, with profits reaching Rs 2,651 crore.
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