ICICI Bank , one of India's leading private sector banks, has reported a robust financial performance for the first quarter, demonstrating resilience in a challenging economic environment.

Profit and Revenue Growth

The bank's profit after tax surged by 15.5% year-on-year to ₹12,768.00 crore, driven by strong core operating performance and improved asset quality. Net interest income, a key metric for banks, increased by 10.6% year-on-year to ₹21,635.00 crore.

Loan Portfolio and Deposit Growth

ICICI Bank's overall loan portfolio, including international branches, grew by 11.5% year-on-year to reach ₹13,63,945.00 crore. The domestic loan portfolio expanded by 12.0% year-on-year, with notable growth in various segments:

• Business banking portfolio: 29.7% year-on-year growth
• Retail loan portfolio: 6.9% year-on-year growth
• Domestic corporate portfolio: 7.5% year-on-year growth

Total deposits increased by 12.8% year-on-year to ₹16,08,517.00 crore.

Asset Quality

The bank maintained a strong asset quality position, with the net non-performing asset (NPA) ratio improving to 0.41%, compared to 0.43% a year ago. The provisioning coverage ratio on non-performing loans stood at a healthy 75.3%.

Net Interest Margin and Operating Expenses

ICICI Bank reported a net interest margin of 4.34%, compared to 4.36% in the same quarter last year. The bank's operating expenses increased by 8.2% year-on-year, reflecting investments in branch expansion and technology infrastructure.

Capital Adequacy

The bank's capital position remained robust, with a CET-1 ratio of 16.31% and a total capital adequacy ratio of 16.97%, including profits for the quarter.

Business Segment Performance

• Retail banking: Continued to be a key focus area, with the retail loan portfolio constituting 43.2% of the total portfolio, including non-fund based outstanding.
• Corporate banking: The bank maintained a cautious approach, with 73.2% of the corporate loan portfolio rated A- and above.
• Digital initiatives: ICICI Bank continued to enhance its digital capabilities to provide simplified solutions to customers.

Management Commentary

Sandeep Batra, Executive Director of ICICI Bank, commented on the results: "Our strategic focus continues to be on growing profit before tax excluding treasury through the 360-degree customer centric approach and by serving opportunities across ecosystems and micromarkets. We remain focused on maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable and predictable returns to our shareholders."

Outlook

While the bank did not provide specific guidance on future performance, management expressed confidence in the bank's ability to capitalize on growth opportunities across key segments. The focus remains on risk-calibrated profitable growth and increasing market share in target areas.

ICICI Bank's quarterly results demonstrate its ability to navigate a challenging economic environment while maintaining strong financial metrics and focusing on sustainable growth strategies.

Key Financial Highlights:

The bank's performance sets a positive tone, with management focusing on leveraging its strong balance sheet and diverse business segments to drive growth in the coming quarters.

ICICI Bank , one of India's leading private sector banks, has announced the completion of its divestment from India Advantage Fund III and India Advantage Fund IV. This move marks a significant shift in the bank's investment strategy and portfolio management.

Divestment Details

According to the disclosure made by ICICI Bank to the stock exchanges, the bank has fully redeemed all residual units held by ICICI Group entities in both India Advantage Fund III (IAF-III) and India Advantage Fund IV (IAF-IV). As a result, these funds are no longer considered associates of ICICI Bank.

Previous Holdings

Prior to this divestment, ICICI Group held substantial stakes in both funds:

Implications of the Exit

The exit from these funds has several implications for ICICI Bank:

1. Simplified Portfolio: The move streamlines ICICI Bank's investment portfolio, potentially allowing for more focused asset management.

2. Regulatory Compliance: The divestment may help the bank in meeting regulatory requirements related to investments and associate entities.

3. Capital Allocation: The funds freed up from this exit could be redirected to other strategic initiatives or core banking operations.

Market Reaction

The immediate market reaction to this news is not available. However, such strategic moves typically attract investor attention. The bank's decision to exit these funds may be seen as a part of its broader strategy to optimize its investment portfolio and focus on core banking activities.

Looking Ahead

As ICICI Bank continues to refine its investment strategy, market observers will be keen to see how the bank deploys its resources and what new investment avenues it might explore. The bank's focus on maintaining a strong balance sheet and delivering sustainable returns to shareholders is likely to guide its future investment decisions.

This divestment from India Advantage Fund III and IV aligns with ICICI Bank's stated approach of focusing on core banking operations and maintaining a prudent risk management strategy. As the financial landscape evolves, such strategic moves will play a crucial role in shaping the bank's future growth trajectory.