ICICI Bank Ltd. Q3 FY2025 earnings call

Strategic focus on growing profit before tax (excluding treasury) via 360-degree customer-centric approach. Loan growth across segments: mortgage up 11.4% Y-o-Y, auto loans 6.6% Y-o-Y, commercial vehicles/equipment 7.4% Y-o-Y, personal loans 8.8% Y-o-Y (down 1.3% Q-o-Q), credit card 17.9% Y-o-Y. Credit quality: gross NPA additions INR 60.85 billion, net additions to gross NPAs INR 26.93 billion. P&L details: net interest income up 9.1% Y-o-Y, net interest margin 4.25%, noninterest income (excluding treasury) up 12.1% Y-o-Y. Operating expenses up 5% Y-o-Y. Subsidiaries performance: ICICI Life, General, AMC, Securities, Canada, U.K., Home Finance had respective financial results.

Profit before tax, excluding treasury grew 12.8% year-on-year and 3.2% quarter-on-quarter to INR 152.89 billion. Core operating profit increased 13.1% year-on-year and 2.9% quarter-on-quarter to INR 165.16 billion. Profit after tax grew 14.8% year-on-year to INR 117.92 billion. Total deposits grew 14.1% year-on-year and 1.5% sequentially at December 31, 2024. Domestic loan portfolio grew 15.1% year-on-year and 3.2% sequentially. Net NPA ratio was 0.42% at December 31, 2024. Total provisions during the quarter were INR 12.27 billion. Capital position strong with CET1 ratio at 15.93% and total capital adequacy ratio at 16.6% at December 31, 2024.

Believe in driving risk-calibrated profitable growth via focus on Customer 360-degree franchise, collaboration, technology, people, distribution, and brand building. Remain focused on strong balance sheet, prudent provisioning, and healthy capital levels.

Dynamic operating environment with global and domestic economic factors. Potential NPA additions, especially in unsecured segments. Fluctuations in interest rates, yield movements, and impact of day count and KCC on yields.

Q: On provisioning utilization/reversal A: No separate write-back number given; credit cost stable on retail/business banking, corporate portfolio has minimal provisioning, recoveries from past write-offs contribute.

Q: On deposit growth A: Sequential softness due to funding requirements, system loan growth slowdown, CRR cut, and RIDF portfolio reduction; strong liquidity with LCR 123%.

Q: On yield decline and day count impact A: Yield decline largely due to KCC; day count impact to unwind in Q4 with positive yield bias.

Q: On corporate banking growth and pricing A: Not margin dilutive; active engagement with corporates, working with them on various requirements fitting P&L aspirations.

Q: On business banking risks A: Segment has formalization, digitization, credit discipline; collateral, granularity, and monitoring help; credit cost lower than retail book.

Q: On fee income and transaction banking A: Focus on transacting platforms, cards/payments, and transaction banking; drive adoption of platforms across customers.

Q: On asset quality and growth trade-off A: Growth not held back by asset quality concerns; secured retail slippages stable, unsecured had corrective actions, trends stabilizing.

Q: On CASA and employee cost A: CASA outperformance due to customer banking relationship and digital platforms; employee cost affected by variables like retiree provisions, headcount moving.

Q: On provisioning sustainability and business banking unsecured A: Provisioning level comfortable around 50 bps; business banking book largely unsecured.