ICICI Bank Ltd. - Q3 FY23 Earning Highlights | Globe Capital
22-Jan-2023
ICICI Bank Ltd. – Q3 FY23 Earning Highlights

Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 4,209 crore in Q3. The gross NPAs written off in Q3 were Rs 4,088 crore. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines was Rs 9,684 crore.

Q3 FY23 Earning Overview and Verdict
CMP
Rs. 870
Verdict
Beats the market estimates

Earning Highlights Q3FY23:

  • Net interest income (NII) increased by 34.6% year-on-year to Rs. 16,465 crore (US$ 2.0 billion) in Q3-2023 from Rs. 12,236 crore (US$ 1.5 billion) in Q3-2022.
  • Core operating profit (profit before provisions and tax, excluding treasury income) grew by 31.6% year-on-year to Rs. 13,235 crore (US$ 1.6 billion) in the quarter ended December 31, 2022 (Q3-2023).
  • Profit after tax grew by 34.2% year-on-year to Rs. 8,312 crore (US$ 1.0 billion) in Q3-2023.
  • Provisions (excluding provision for tax) for the quarter fell 27% YoY to Rs 2,007 crore from Rs 2,742 crore in the same period last year. Provision coverage ratio, meanwhile, stood at 79.9 per cent as of December 31, 2021.
  • The net interest margin (NIM) was 4.65% in Q3-2023 compared to 3.96% in Q3-2022 and 4.31% in the quarter ended September 30, 2022 (Q2-2023). The net interest margin was 4.33% in 9M-2023.
  • Total period-end deposits grew by 10.3% year-on-year to Rs. 11,22,049 crore (US$ 135.6 billion) at December 31, 202.2
  • Average current account and savings account (CASA) ratio was 44.6% in Q3-2023.
  • Net NPA ratio declined to 0.55% at December 31, 2022 from 0.61% at September 30, 2022
  • Provisioning coverage ratio on non-performing assets was 82.0% at December 31, 2022

Valuation & View:

At the CMP of Rs. 870, the stock is trading at P/BV multiple of 2.65 times with the Book Value of Rs. 365, which is fairly valued.

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