ICICI Q3 FY 22 Research Tear sheet

ICICI Bank Limited is an Indian multinational bank. The bank is headquartered in Vadodara, Gujrat. The bank offers a wide range of banking products and financial services for corporate and retail customers. It was incorporated on 5^th January 1994.The bank has made its presence in 17 countries. The stocks are traded on BSE, NSE and NYSE. Net interest income grew 23.4% y-o-y to ` 122.36 billon. The Net interest margin (%) grew 23.4% y-o-y to 122.36 billon. Provision to core operating profit (%) 20.0 in Q3-2022. Operating expenses grew 19.2% y-o-y to ` 42.91 billon 3.96 in Q3-2022.

Key Financial Highlights

Deposits:

Average current account deposits increased by 33.7% in Q3-2022. The saving account shows a savings account deposits increased by 24.7% in Q3-2022. Total deposits increased by 16.4% y-o-y at December 31, 2021.

Loan:

Domestic loans increased by 17.9% y-o-y and 6.5% q-o-q. Retail loans increased by 18.6% y-o-y and 5.1% q-o-q. Business banking portfolio increased by 38.5% y-o-y and 8.8% q-o-q and the SME portfolio up by 34.2% y-o-y and 9.7% q-o-q. Domestic corporate portfolio raised by 12.5% y-o-y and 9.0% q-o-q.

Asset Quality:

Net NPAs deceased by 10.0% to ₹ 73.44 billion in Q3 2021. The net NPA ratio declined from 0.99% to 0.85%.Net deletions of ` 1.91 bln from gross NPAs.

Conference Call Highlights:

Management Updates

Profit after tax grew by 25.4% y-o-y to ` 61.94 billion.

Digital transformation has helped to scale, 68% younger clients.

Common Equity Tier 1 ratio of 17.64%.

The Bank has accounted for additional employee expense for, ₹ 0.69 bn during Q3-2022 and ₹ 1.94 bn during 9M-2022.

Business Updates:

RBI has imposed monetary penalty on ICICI Bank for rule violations.

ICICI Bank launches contactless payment solution through iMobile Pay.

ICICI Bank initiated overdraft facility for registered Flipkart sellers.

ITILITE enters into partnership with ICICI Bank to offer commercial credit card.