• ICICI Bank's Q2 FY25 net profit rose by 14.5% to Rs 11,746 crore, demonstrating strong operational performance.
• The bank's net interest income increased by 9.5%, reflecting robust lending operations.
• ICICI Bank's net non-performing asset ratio improved slightly, indicating a focus on maintaining healthy asset quality.
• The bank's subsidiaries, ICICI Prudential Asset Management Company and ICICI Securities, also reported strong performance, contributing to the bank's overall robust financial performance.

ICICI Bank, one of India's leading private sector lenders, has reported a robust growth in its net profit for the second quarter of the fiscal year 2025. The bank's net profit surged by 14.5% to Rs 11,746 crore, up from Rs 10,261 crore in the same quarter of the previous fiscal year.

The growth in profit reflects the bank's strong operational performance and its ability to navigate the challenging economic environment. The bank's net interest income (NII), a key measure of a bank's profitability, also saw a healthy increase.

The NII for Q2 FY25 stood at Rs 20,048 crore, marking a 9.5% increase from Rs 18,308 crore in the same quarter of the previous year. This growth in NII is indicative of the bank's strong lending operations and its ability to maintain a healthy interest margin.

In terms of asset quality, the bank reported a slight improvement in its net non-performing asset (NPA) ratio. The net NPA ratio stood at 0.42% at the end of September 2024, compared to 0.43% at the end of June 2024. 

ICICI Bank's Proactive Approach Towards NPAs

The bank's proactive approach towards managing its NPAs is also evident from its write-offs and provisioning. The bank wrote off gross NPAs amounting to Rs 3,336 crore in Q2 FY25. Furthermore, the bank maintained a provisioning coverage ratio of 78.5% on non-performing loans as of September 30, 2024, which is a measure to cover potential losses from bad loans.

ICICI Bank's deposit base also saw a significant increase. The average deposits grew by 15.6% year-on-year to Rs 14,28,095 crore as of September 30, 2024. This growth in deposits reflects the bank's strong customer base and its ability to attract and retain depositors.

The bank's loan portfolio also witnessed a healthy growth. The domestic loan portfolio grew by 15.7% year-on-year to Rs 12,43,090 crore. This growth in the loan portfolio is indicative of the bank's strong lending operations and its ability to cater to the credit needs of its customers.

Expansion and Performance of ICICI Bank's Subsidiaries

In terms of branch expansion, the bank added 90 branches during the first half of FY25, taking its total network to 6,613 branches. This expansion in the branch network is part of the bank's strategy to deepen its reach and serve a larger customer base.

The bank's subsidiaries also reported strong performance. The profit after tax of ICICI Prudential Asset Management Company increased to Rs 694 crore in Q2 FY25, up from Rs 501 crore in Q2 FY24. Similarly, the profit after tax of ICICI Securities, on a consolidated basis, increased to Rs 529 crore in Q2 FY25, up from Rs 424 crore in Q2 FY24.

The bank's performance in Q2 FY25 is a reflection of its strong operational efficiency, prudent risk management, and robust growth strategy. The bank's ability to deliver strong financial performance amidst challenging economic conditions is a testament to its resilience and adaptability.