ICICI Bank continues to show strong financial performance, with an 18% jump in net profit to ₹12,629.58 crore for the quarter ending March 2025 (Q4FY2025). The bank’s net interest income (NII) – the difference between interest earned and interest paid – rose 11%, and its core fee income (income from services like ATM fees, account maintenance, etc.) grew by 16% during the same quarter.
Key Highlights of Q4FY2025:
- Net Interest Margin (NIM) improved to 4.41%, up from 4.25% in the previous quarter and 4.40% in the same period last year.
- Loan book (total loans given) grew by 13%, and overall business increased by 14% year-on-year.
- CASA ratio (percentage of deposits in current and savings accounts) improved to 41.8%, up from 40.5% in the previous quarter but slightly down from 42.2% last year.
- The bank improved its asset quality:
- Fresh bad loans (slippages) reduced to ₹5,142 crore from ₹6,085 crore in the previous quarter.
- Recoveries and upgrades stood at ₹3,817 crore, while loan write-offs were ₹2,118 crore.
- Provision Coverage Ratio (PCR) eased slightly to 76.20% from 78.20% a quarter ago.
- Capital adequacy ratio (measure of financial strength) stood at 16.6%, with Tier I capital at 15.9%.
- Risk-weighted assets grew by 17% to ₹16.11 lakh crore.
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Business Performance:
- Deposits grew by 14% to ₹16.10 lakh crore.
- Current account deposits rose 20%, and savings account deposits increased 10%.
- Retail loans rose by 9%, agriculture loans by 5%, and MSME loans by 34%.
- Corporate loans increased 12%, while overseas loans dropped 8%.
- The investment portfolio increased 9% to ₹5.05 lakh crore.
Operational Efficiency:
- Interest earned increased 12% to ₹42,430.80 crore, while interest expenses rose 13%.
- Operating expenses went up 11%, but the cost-to-income ratio improved to 37.9% from 39.2% last year.
- Operating profit increased by 17% to ₹17,664.25 crore.
- Provisions and contingencies rose by 24% to ₹890.70 crore.
- The bank’s effective tax rate declined to 24.7%, helping push net profit up by 18% YoY.
Branch Expansion:
- ICICI Bank added 241 new branches and 8 ATMs, taking the total to 6,983 branches and 16,285 ATMs.
Consolidated Performance:
- Overall profit (including subsidiaries) rose by 15.7% to ₹13,502 crore.
- Total consolidated assets increased by 11.8% to ₹26.42 lakh crore.
Performance of Key Subsidiaries:
- ICICI Prudential Life Insurance:
- Annual premium grew to ₹10,407 crore.
- Profit increased to ₹1,189 crore for FY2025 (₹386 crore in Q4).
- ICICI Lombard General Insurance:
- Premium income increased to ₹26,833 crore.
- Profit rose 30.7% to ₹2,508 crore.
- ICICI Prudential AMC:
- Q4 profit increased to ₹692 crore.
- FY2025 profit grew 29.3% to ₹2,651 crore.
- ICICI Securities:
- FY2025 profit grew 14.4% to ₹1,942 crore.
- Now a fully-owned subsidiary of ICICI Bank after being delisted from stock exchanges in March 2025.
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Full-Year (FY2025) Performance:
- Net profit for FY2025 jumped 16% to ₹47,227 crore.
- NII increased by 9% to ₹81,164 crore.
- Non-interest income grew by 24% to ₹28,507 crore.
- Cost-to-income ratio improved to 38.6% from 40.2%.
- Provisions rose by 29%, but due to tax efficiency and revenue growth, the overall profit before tax rose 15%.
Summary:
ICICI Bank has delivered robust performance in both the fourth quarter and full financial year of 2025. With solid growth in profits, strong loan and deposit growth, and improving operational efficiency, the bank remains in a healthy financial position and continues to expand its business across sectors.
