ICICI Bank Q2 results: 5 key highlights of the quarter

Credit growth:

ICICI Bank’s retail loan portfolio climbed by 25% year-on-year and 6% sequentially and comprised 54% of the total loan portfolio on September 30, 2022. The portfolio including non-fund outstanding stood at 44% of the total portfolio as of September 30, 2022.

The business banking portfolio grew by 43% year-on-year and 11% sequentially as of September 30, 2022. The SME business, comprising borrowers with a turnover of less than ₹250 crore, grew by 27% year-on-year and 6% sequentially as of September 30, 2022. The domestic corporate portfolio grew by 23% year-on-year and 7% sequentially as of September 30, 2022. The rural portfolio grew by 12% year-on-year and 4% sequentially as of September 30, 2022. The domestic advances grew by 24% year-on-year and 6% sequentially as of September 30, 2022.

The bank’s total advances stood at ₹938,563 crore up by 23% yoy and 5% qoq.

Deposit growth:

In Q2FY23, the bank’s deposits jumped by 12% yoy to ₹1,090,008 crore. Average current account and savings account deposits increased by 16% year-on-year in Q2-2023.

Period-end term deposits increased by 11% year-on-year to ₹582,168 crore at September 30, 2022.

Asset quality:

The Gross NPA ratio improved to 3.19% in Q2FY23 versus 3.41% in Q1FY23 and 4.82% in Q2FY22. The net NPA ratio bettered to 0.61% in Q2FY23 against 0.70% in Q1FY23 and 0.99% in Q2FY22.

ICICI Bank highlighted that during the quarter, there were net additions of ₹605 crore to gross NPAs compared to ₹382 crore in Q1FY23.

Further, recoveries and upgrades of NPAs, excluding write-offs and sales, were ₹3,761 crore in Q2FY23 compared to ₹5,443 crore in Q1FY23. The gross NPAs written off in Q2-2023 were ₹1,103 crore. The provisioning coverage ratio on NPAs was 80.6% as of September 30, 2022.

Provisions (excluding provision for tax) declined by 39% yoy of ₹1,644 crore in Q2FY23 from ₹2,714 crore in Q2FY22. Provisions for Q2FY23 include a contingency provision of ₹1,500 crore made on a prudent basis.

Capital adequacy:

Including profits for the six months ended (H1-2023), the Bank’s total capital adequacy ratio as of September 30, 2022 was 18.27% and Tier-1 capital adequacy was 17.51% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.

Digital and payments platforms:

In Q2FY23, ICICI Bank’s value of credit card spends climbed by 4% sequentially and 43% year-on-year. The lender witnessed healthy growth in retail credit card spends led by an increase in discretionary spending and a higher activation rate through digital onboarding of customers, including Amazon Pay credit cards. Since its launch, the bank has issued more than 3.5 million Amazon Pay credit cards.

Further, in Q2FY23, the bank’s value of financial transactions on InstaBIZ grew by 23% yoy. About 1.95 lakh registrations from non-ICICI Bank account holders on InstaBIZ till September 30, 2022.

Also, the value of merchants acquiring transactions through UPI in Q2FY23 grew by 26% yoy and was 2.2 times the value of transactions in Q2-2022. The Bank had a market share of 31% by value in electronic toll collections through FASTag in Q2-2023, with a 20% year-on-year growth in collections.

ICICI Bank’s Trade Online and Trade Emerge platforms allow customers to perform most of their trade finance and foreign exchange transactions digitally. About 70% of trade transactions were done digitally in Q2 of this year. The value of transactions done through these platforms increased by 70% year-on-year in Q2 of this year.