ICICI Bank (ICICIBANK)
Why the stock moved
Stellar Q3 results with net profit up 16% YoY; announced 1:5 bonus issue and significant dividend.
In-depth analysis
ICICI Bank delivered an outstanding performance with net profit of ₹11,792 crores, driven by strong core operating income and controlled credit costs. The bank announced a 1:5 bonus issue along with interim dividend of ₹5 per share, rewarding shareholders. Retail loan book grew 17% with focus on secured lending. Corporate credit seeing renewed demand post capacity utilization improvement.
Key highlights
- Bonus Issue: 1:5 bonus shares announced, first bonus in 14 years
- Profit Growth: Net profit up 16% YoY to ₹11,792 crores
- NIM Strong: NIM at 4.50%, among highest in private banks
- Asset Quality: GNPA at 2.15%, down from 2.48% last year
- ROE Excellence: ROE at 18.2%, sustaining above 18% for 8 quarters
Outlook
Bank targets 15-17% loan growth for FY25 with balanced mix of retail and corporate. Focus on granular retail deposits to maintain NIM. Technology investments in AI and analytics for risk management and cross-selling. International business contributing 6% of revenue, targeting 10% in 3 years. Aim to maintain ROE above 18%.
Risk factors
Unsecured retail portfolio growing faster, needs monitoring. Competitive intensity in retail deposits increasing. Provision coverage ratio at 74%, lower than some peers. Regulatory changes in risk weights for certain segments.