Private lender ICICI Bank on Friday reported a 24% year-on-year jump in net profit to Rs 10,271 crore for the October-December quarter, aided by a reduction in bad loans and growth across retail lending segments.
The performance matched market estimates of around Rs 9,946 crore profit for the period. ICICI’s asset quality improved substantially, with gross non-performing assets declining to 2.30% versus 3.07% last year and net NPA ratio easing to 0.44% from 0.55%.
The country’s second-largest private bank witnessed strong traction in its retail portfolio, which now constitutes 65.4% of overall advances – a new high. The bank remains upbeat on retail demand trends heading into 2023, even as corporate loan growth begins accelerating after a pandemic-induced slowdown.
With profits rising in line with expectations, ICICI Bank seems to have overcome the impact of higher provisions due to expanded lending. Investors reacted positively to the latest earnings release, underscoring the lender’s strength amid a volatile macro environment.