ICICI Bank Q3 results: Net profit surges to record high on strong loan growth

ICICI Bank Q3 results: Strong loan growth boosts ICICI Bank's Q3 profit to record high.

India's ICICI Bank reported better-than-expected third-quarter profit on Saturday, helped by robust loan growth, although its net interest margin (NIM) shrank for the fourth straight quarter.

FILE PHOTO: A bird flies past the facade of the ICICI bank head office in Mumbai, India, April 21, 2023. (REUTERS)

The country's second-biggest private bank reported a record high standalone net profit of 102.72 billion rupees ($1.24 billion) for the quarter ended Dec. 31, compared to analysts' expectation of 100.25 billion rupees as per LSEG data.

ICICI's NIM - the difference between interest obtained on loans and paid on deposits expressed as percentage - came in at 4.43%, compared to 4.65% last year and 4.53% last quarter.

Indian lenders have been reporting double-digit loan growth consistently over the past few months owing to higher demand, but rising deposit costs have squeezed their margins.

Earlier this week, HDFC Bank, India's biggest private lender, reported weak margins for a second consecutive quarter.

ICICI Bank's total loans grew by 18.8% on-year, largely led by retail loans, while deposits grew 18.7%.

Its net interest income - the difference between interest earned and paid - rose 13.4% to 186.78 billion rupees.

Asset quality improved, with gross non-performing assets ratio at 2.30% as of end-December versus 2.48% at the end of September.

Shares of ICICI Bank closed 1% higher ahead of the results.