Why ICICI Bank's Share Price Is Climbing Nearly 2% After Q4 Results

Shares of ICICI Bank were gaining on Monday after the country’s second-largest private lender posted a 17 percent increase in net profit, attributed to improved asset quality.

What Happened: In the fourth quarter, ICICI Bank reported a net profit of ₹10,707.53 crore, marking a notable rise from ₹9,122.87 crore recorded in the same quarter last year. This marginally beat market estimates of ₹10,465 crore. However, on a sequential basis, net profit witnessed a modest increase of just 4.3%.

The company also declared a final dividend of ₹10 per share.

In terms of asset quality, the gross non-performing asset (NPA) ratio declined to 2.16%, from 2.30% as of December 31, 2023. Similarly, the net NPA ratio decreased to 0.42% by March 31, 2024, compared to 0.44 percent at the end of December 2023 and 0.48% a year earlier.

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Other Important Metrics: In terms of credit growth, net domestic advances grew by 16.8% year-on-year and 3.2% sequentially. The retail loan portfolio witnessed a year-on-year growth of 19.4% and a sequential increase of 3.7%, accounting for 54.9% of the total loan portfolio.

SME business, catering to borrowers with a turnover of less than ₹250 crore, grew by 24.6% year-on-year and 3.8% sequentially, while the rural portfolio expanded by 17.2% year-on-year and 4.5% sequentially.

Regarding deposit growth, total period-end deposits rose by 19.6% year on year and 6.0% sequentially to ₹14.13 lakh crore. Average current account deposits grew by 13.0%, while average savings account deposits increased by 4.6%.

Price Action: ICICI Bank’s share price was up 1.89% at ₹1,128.85 in early trade on Monday.

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