Detailed Narrative
ICICI Bank delivered a robust performance in Q4 FY25 and for the full financial year, demonstrating resilience amidst a dynamic economic environment. For Q4 FY25, the Bank reported a net interest income of ₹21,193 crore, marking an 11.0% year-on-year growth. The net interest margin (NIM) stood at 4.41% for the quarter, with the full-year FY25 NIM at 4.32%. Profit after tax for the quarter surged by 18.0% year-on-year to ₹12,630 crore, contributing to a full-year profit after tax of ₹47,227 crore, up 15.5% from FY24. Consolidated profit after tax also saw healthy growth, reaching ₹13,502 crore in Q4 FY25, a 15.7% increase year-on-year.
The Bank's deposit and loan portfolios exhibited strong growth. Total period-end deposits grew by 14.0% year-on-year to ₹16,10,348 crore at March 31, 2025, with average deposits increasing by 11.4% year-on-year. The domestic loan portfolio expanded by 13.9% year-on-year, driven by a 33.7% growth in the business banking portfolio and an 11.9% growth in the domestic corporate portfolio. Retail loans, while moderating, still grew by 8.9% year-on-year, constituting 43.8% of the total portfolio. The Bank continued its network expansion, adding 241 branches in Q4 FY25 and 460 over the last 12 months, bringing the total to 6,983 branches.
Asset quality remained strong, with the net NPA ratio improving to 0.39% at March 31, 2025, from 0.42% in the previous quarter. Gross NPA additions for Q4 FY25 were ₹5,142 crore, with net additions to gross NPAs at ₹1,325 crore. The provisioning coverage ratio on non-performing loans was a healthy 76.2%. The Bank also maintained substantial contingency provisions of ₹13,100 crore. Capital adequacy remained robust, with a CET-1 ratio of 15.94% and a total capital adequacy ratio of 16.55% after accounting for the proposed dividend of ₹11 per share for FY25.
Management, led by Sandeep Batra and Anindya Banerjee, expressed a bullish outlook, emphasizing a risk-calibrated growth strategy focused on micromarkets and ecosystems. They highlighted the stability of the unsecured loan portfolio and the comfort with current credit quality. While acknowledging potential impacts from repo rate cuts on margins, they expressed confidence in leveraging the Bank's franchise and various levers to optimize risk-calibrated profits. The Bank expects loan and deposit growth to move in tandem and plans to add a similar number of branches in the next year as in the last. The overall tone was confident, backed by detailed financial figures and a clear strategic direction, despite some questions on specific portfolio breakdowns being deferred.