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News: NII was up 25.2% YoY, though down 2.4% QoQ to Rs 1909 crore, led by 18 bps QoQ decline in NIMs at 3.31%. Other income saw a significant jump of 57.8% YoY, 37.4% QoQ led by treasury gain of Rs 192 crore. Provisions declined QoQ to Rs 117 crore, resulting in credit cost at 19 bps vs. 38 bps in Q3FY23. Thus, PAT for the quarter came in at Rs 903 crore, up 67% YoY, 12.3% QoQ. Strong PAT resulted in highest RoA at 1.45% (annualised). Asset quality was largely steady QoQ with GNPA and NNPA ratio at 2.36% and 0.69%, respectively. Total funded assets were up 20% YoY and 4% QoQ to Rs 1.77 lakh crore, led by strong growth across segments. Retail, agri, corporate segment was up 17%, 21%, 22% YoY, respectively. Customer deposit growth was at 17.4% YoY to Rs 2.13 lakh crore, in which CASA deposits grew 4% YoY
View: Business growth continued to remain healthy. While treasury gains boosted earnings, sequential dip in margins (not seen in case of other lenders) has impacted operational performance. The management maintained its guidance of high teen growth in advances with continued focus on unsecured segment to aid margins and thus, RoA at 1.3-1.35%
Impact: Neutral