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Ventura Wealth Clients
2 min Read

On January 20th, 2024, ICICI Bank, India's second-largest bank in the private sector, published its financial results for the third quarter of the financial year 2023-24. The performance painted a picture of continued growth with improving asset quality, solidifying the bank's position in the Indian financial landscape. Let’s look at the highlights of the report.

Financial highlights

  • Net Profit: The headline figure was a 23.5% year-on-year surge in net profit to ₹10,272 crore, surpassing analyst expectations. This robust growth reflects the bank's ability to capitalise on a burgeoning demand for credit across various segments.
  • Core Operating Profit: Excluding dividend income from subsidiaries and associates, core operating profit grew by 9.7%, showcasing the bank's sustained earning potential from its core business operations.
  • Net Interest Income (NII): NII, a key measure of interest earned from loans minus interest paid on deposits, increased by 13% year-on-year to ₹18,404 crore. This indicates effective interest rate management and efficient loan book growth.
  • Asset Quality: The gross non-performing asset (NPA) ratio declined to 2.30% from 3.07% in the same period last year, demonstrating consistent improvement in loan book health. Additionally, provisions for bad loans fell by 32%, underscoring the bank's confidence in its loan portfolio.

Growth drivers

ICICI Bank's Q3 performance was driven by several factors, including:

  • Strong Retail Focus: The retail loan book registered a healthy 21% year-on-year growth, led by significant increases in personal loans (37%) and credit cards (40%). This reflects the bank's successful execution of its retail lending strategy.
  • Diversification Across Segments: Growth was witnessed across various business segments, with business loans growing by 32% and rural loans by 18%. This diversification mitigates risk and creates a more resilient income stream.
  • Focus on Digital Initiatives: The bank's continued investment in digital technologies has enhanced customer experience and operational efficiency, contributing to overall growth.

Challenges and outlook

While the performance is encouraging, some challenges remain. Rising interest rates could put pressure on net interest margins (NIM) in the coming quarters. Additionally, geopolitical uncertainties and a potential global economic slowdown could impact loan growth.

Despite these challenges, ICICI Bank remains well-positioned for continued growth. The bank's robust capital adequacy ratio of 14.6%, strong liquidity position, and focus on digital transformation provide a solid foundation for navigating future headwinds.


ICICI Bank's Q3 results paint a picture of a resilient and growing institution. With a focus on retail lending, diversification across segments, and embracing digital initiatives, the bank is well-positioned to weather potential challenges and capitalise on future opportunities. As India's economy continues to expand, ICICI Bank is poised to play a pivotal role in financing growth and prosperity across the nation.

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