Aim to grow loan portfolio in a granular manner with a focus on risk and reward

Reported By:| Edited By: |Source: |Updated: Jul 28, 2022, 10:36 AM IST

Sandeep Bakhshi, ICICI Bank: Aim to grow loan portfolio in a granular manner with a focus on risk and reward

Mumbai: ICICI Bank, one of India’s leading private lenders, reported a 19% growth in core operating profit YoY to Rs. 10,273 crore in Q1-2023. The bank reported a 21% YoY jump in net interest income (NII) at Rs. 13,210 crore in Q1 2023 while net interest margin (NIM) grew to 4.01% from 3.89% a year ago. Profit after tax grew by 50% YoY to Rs 6,905 crore in Q1-2023.

Sandeep Bakhshi, MD & CEO, ICICI Bank, on analyst call, said, “Our focus is to grow the core operating profit in a risk calibrated manner through a 360-degree customer-centric approach and by focusing on ecosystems and micro-markets. With an aim to grow loan portfolio in a granular manner with a focus on risk and reward.”

Growth in Deposits:

Deposit growth continued to be robust, with total deposits growing at 13% YoY to Rs. 10,50,349 crore at June 30, 2022. Term deposits increased by 11% YoY to Rs. 558,235 crore.

The average current account deposits increased by 23% YoY and 3% sequentially while average savings account deposits increased by 19% YoY and 4% sequentially at June 30 2022. Average current and savings account (CASA) ratio stood at 46% in Q1-23.

Asset quality:

ICICI Bank’s asset quality improved further with increase recoveries and upgrades, and decline in NPA additions during the quarter. The net NPA ratio declined to 0.70% at June 30, 2022 from 0.76% at March 31 2022.

Provision coverage was 79.6% at Jun 30, 2022 compared to the previous quarter at 79.2%. The total provisions during the quarter was 11.1% of core operating profit and 0.53% of average advances.

Loan growth:

The overall loan portfolio grew by 21% YoY and 4% sequentially at June 30, 2022.The retail loan portfolio grew by 24% YoY and 5% sequentially, and comprised 53.1% of the total loan portfolio at June 30, 2022. Growth in the domestic wholesale banking portfolio was 14% YoY at June 30, 2022.

The domestic advances grew by 22% YoY and 4% sequentially at June 30, 2022.

Digital initiatives: 

There have been 73 lakh activations from non-ICICI Bank account holders of iMobile Pay 3.0 which is a universal super app offering payment and banking services to customers of any bank. The value of transactions in Q1-2023 was 35% more the value of transactions in Q4-2022.

The value of transaction through UPI was 2.3 times YoY and Bank’s merchant acquiring transactions through UPI in Q1-2023 grew by 27% over Q4-2022.Being the market leader in electronic toll collection through FASTag, ICICI bank had a market share of about 32% by value in Q1-2023, with a 52.8% YoY growth in collections.

The value of financial transactions has grown by 57 % YoY on InstaBIZ in Q1-2023. The growth in spends through InstaBIZ app has almost soared 2.8 times in Q1-2023 compared to Q1-2022 and the YoY growth in active merchants is 69%. BizPay360 a bulk payment solution offered by the bank has acquired more than 35,000 new registrations in Q1-2023 and the throughput value has grown by 12 per cent in Q1-2023 from previous quarter.

High Capital adequacy:

The Bank’s total capital adequacy ratio at June 30, 2022 was 18.74% and Tier-1 capital adequacy was 17.95% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.

Promising Growth in Core Operating Profit:

Looking ahead, Sandeep Bakhshi said, “We see many opportunities to grow the core operating profit in a risk-calibrated manner. In order to leverage these opportunities, we have reorganized our business teams. Cities with large concentrated market opportunities have been organised under ‘city business heads’ covering the full spectrum of ecosystems. We have also focused on strengthening the workforce by skilling and providing cross-functional opportunities. We will continue to make investments in technology, people, distribution and building our brand.”

 “We continue to be guided by the twin principles of ‘One Bank, One RoE’, emphasising the goal of maximizing our share of target market across all products and services and ‘Fair to Customer, Fair to Bank’, emphasising the need to deliver fair value to customers while creating value for shareholders”, said Sandeep Bakhshi.






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