ICICI Bank Q2: Net Profit Climbs To Rs 11,746 Crore As Non-Interest Income Grows

The lender on Saturday clocked a profit of Rs 11,746 crore in the second quarter of the 2024-25 fiscal year(FY25) against Rs 10,261 crore logged in the corresponding quarter a year earlier

The net interest income (NII) of the bank stood at Rs 20,048 crore in Q2FY25 backed by a strong growth in advances, climbing 9.5 per cent from the same period last year.

Source : ICICI Bank

ICICI Bank reported a 14.5 per cent jump in its net profit for the July-September quarter in the current fiscal year on a year-on-year (YoY) basis. The lender on Saturday clocked a profit of Rs 11,746 crore in the second quarter of the 2024-25 fiscal year(FY25) against Rs 10,261 crore logged in the corresponding quarter a year earlier.

This growth was attributed to a healthy growth in non-interest income, fee income, and treasury gains. The net interest income (NII) of the bank stood at Rs 20,048 crore in Q2FY25 backed by a strong growth in advances, climbing 9.5 per cent from the same period last year. The NII helps understand the interest earned by the bank after calculating the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 

The net interest margin of the lender slipped to 4.27 per cent in the quarter under review, in comparison to 4.53 per cent reported in the July-September period last year. This metric is a measure of profitability of the banks.

The asset quality of the lender improved significantly as its gross non-performing assets ratio (NPA) stood at 1.97 per cent in Q2FY25, in comparison to 2.48 per cent clocked in the second quarter of the 2023-24 fiscal year (FY24). The net NPA ratio slipped slightly to 0.42 per cent from 0.43 per cent on a YoY basis. NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full.

 The gross slippages in the period under review stood at Rs 5,073 crore, while the bank clocked Rs 5,916 crore in the year-ago quarter. Slippages refer to the amount of loans that have recently become NPAs. The metric helps measure how many loans have gotten bad and become NPAs and therefore, helps understand the quality of a lender’s loans.