ICICI Bank Q1 Results Review- RoA Components Moderating From Peak Do Not Change Overall Thesis: Yes Securities

Yes Securities Report

ICICI Bank Ltd.'s gross non-performing asset additions amounted to Rs 59.16 billion for Q1 FY25, translating to an annualized slippage ratio of 1.9% for the quarter. Gross NPA additions had amounted to Rs 51.39 billion during Q4 FY24. Retail, rural and business banking contributed Rs 57.32 billion to slippages, which includes additions of Rs 7.21 billion from the KCC portfolio, which are seasonally elevated in the odd quarters.

Provisions were Rs 13.32 billion, up by 85.4% QoQ and 3.1% YoY, translating to annualised credit cost of 43 bps. The pace of recoveries will slow and hence, credit cost will normalise upward gradually from the current level of 50 bps of normalised credit cost.

Net interest margin was 4.36%, down -3 bps QoQ and -50 bps YoY. The cost of deposits has risen 2 bps QoQ to 4.84% whereas the yield on advances has declined 8 bps QoQ to 9.80%. The yield on advances has been under some pressure due to competitive intensity, particularly in corporate business and mortgages.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.