ICICI Bank Q4: Net profit rises 18%, NII advances 11%, asset quality improves

ICICI Bank's net interest income, or the difference between interest earned and interest expended, rose 11% in the January-March period to ₹21,192.94 as against ₹19,092.80 crore in the year-ago period.

The bank's provisions for bad loans advanced 24% to ₹891 crore in the March quarter from ₹718 crore in the same period last year.

The Mumbai-based lender's asset quality showed improvement in the March quarter as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.67% as against 1.96% in the previous quarter and 2.16% in the same period last year.

Its net NPA came in at 0.39% marginally lower than 0.42% in the year-ago period.

In absolute terms, ICICI Bank's gross NPA was 24,166.18 crore as against ₹27,961.68 in the year-ago period.

Key ICICI Bank Q4 earnings highlights

Net interest margin (NIM) for Q4FY25 stood at 4.41%, up from 4.25% in Q3FY25 and marginally higher than 4.40% in the year-ago period. For the full financial year, NIM averaged 4.32%, ICICI Bank said.

Non-interest income, excluding treasury gains, surged 18.4% year-on-year to ₹7,021 crore in Q4 from ₹5,930 crore a year ago.

Fee income rose by 16.0% annually to ₹6,306 crore, driven largely by contributions from retail, rural, and business banking customers, which accounted for approximately 80% of total fees, ICICI Bank said.

Net domestic advances increased 13.9% annually and 2.2% sequentially, with the retail loan portfolio expanding 8.9% annually and forming 52.4% of the total loan book as of March 31, 2025.

Average deposits grew 11.4% annually to ₹14.87 lakh crore. Within this, average current account deposits rose 9.6%, while average savings deposits increased 10.1% annually.

The bank’s board recommended a dividend of ₹11 per share subject to requisite approvals.

ICICI Bank shares ended 3.68% higher at ₹1,406.65 on Thursday ahead of its earnings announcement. ICICI Bank shares have so far this year surged nearly 10%, outperforming the NIFTY50 index which has advanced 0.87% year to date.