ICICI Bank Q1 Results: Asset quality improves marginally, net NPA ratio at 0.48%
₹9,648 crore from ₹6,904 crore during the corresponding quarter last fiscal. In Q1, the ICICI Bank experienced a significant 38% year-on-year rise in its net interest income (NII), reaching ₹18,227 crore. Additionally, the net interest margin (NIM) during the quarter stood at 4.78%, demonstrating an increase from 4.01% in the first quarter of the previous financial year (FY23) and a slight decrease from 4.90% in the fourth quarter of FY23.
The gross NPA ratio of the ICICI Bank was 2.76% during the quarter under review compared to 2.81% in Q1FY23. The net NPA ratio was 0.48% on June 30, 2023, compared to 0.48% on March 31, 2023, and 0.70% on June 30, 2022. The net addition to gross NPAs, excluding write-offs and sale, were ₹ 1,807 crore in Q1FY24 compared to ₹ 14 crore in Q4FY23.
The gross NPA additions were ₹ 5,318 crore during the quarter ending June 2023 compared to ₹ 4,297 crore in Q4FY23. Recoveries and upgrades of NPAs, excluding write-offs and sales, were ₹ 3,511 crore in Q1FY24 compared to ₹ 4,283 crore in Q4FY23. The ICICI Bank has written off gross NPAs amounting to ₹ 1,169 crore during April to June quarter.
The provision coverage ratio on NPAs was 82.4% on June 30, 2023. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹ 3,946 crore or 0.4% of total advances on June 30, 2023, from ₹ 4,508 crore on March 31, 2023. The ICICI Bank holds provisions amounting to ₹ 1,224 crore against these borrowers under resolution.
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