ICICI Bank Posts Strong Quarterly Profit, Driven by Declining Bad Loan Provisions
MUMBAI, Oct 26 - ICICI Bank, India’s second-largest private sector lender, reported quarterly profits exceeding analyst expectations, buoyed by a significant decrease in provisions set aside for potential losses on bad loans. The bank’s strong performance signals continued resilience within the Indian banking sector and offers a positive outlook amidst global economic headwinds.
The substantial reduction in non-performing asset (NPA) provisions allowed ICICI Bank to bolster its profitability, demonstrating improved asset quality and effective risk management. This outcome is particularly significant as Indian banks have historically grappled with high levels of stressed assets. The results impact investors, depositors, and the broader Indian economy, potentially influencing future lending rates and credit availability. analysts predict continued focus on prudent lending practices and digital innovation will be key to sustaining this positive trajectory.
ICICI Bank’s net profit for the July-September quarter reached ₹10,648 crore (approximately $1.28 billion), a rise from ₹8,006 crore in the same period last year, according to a regulatory filing. The bank’s gross non-performing assets (GNPA) ratio declined to 1.71% as of September 30,compared to 2.23% a year ago.
“The improvement in asset quality is a key driver of the strong performance,” stated Sandeep Bakhshi, Managing Director and CEO of ICICI Bank, in a post-earnings conference call. “We remain focused on maintaining a healthy balance sheet and supporting economic growth through responsible lending.”
The bank also reported a net interest margin (NIM) of 4.43%, indicating healthy profitability from its core lending business. ICICI Bank’s shares rose as much as 3% in early trading following the announcement, reflecting investor confidence in the bank’s performance and future prospects.
