Ashok Leyland Ltd.

Automobiles-Trucks / Lcv

ICICI Bank Ltd

Financial Services

Head Quarters:Mumbai, Maharastra
Managing Director: Mr. Sandeep Bakhshi

Company Overview

ICICI was established in 1955 through a collaboration between the World Bank, the Government of India, and Indian industry representatives. Its core mission was to function as a development financial institution, providing medium and long-term project financing to Indian businesses. For several decades, ICICI focused mainly on project finance, supporting industrial growth by funding various long-term ventures.

With the economic reforms of the 1990s, India’s financial sector underwent significant liberalization. ICICI responded by transforming itself from a development finance institution into a diversified financial services provider. It expanded its offerings through subsidiaries and group companies, providing a wide range of financial products and services to meet evolving market demands.

In 1994, ICICI Bank was incorporated as part of the ICICI Group to provide retail and corporate banking services. ICICI marked a major milestone in 1999 by becoming the first Indian company and the first Asian bank outside Japan to list on the New York Stock Exchange.

As the concept of universal banking gained prominence in India, ICICI saw the potential benefits of converting into a commercial bank—such as access to low-cost deposits and opportunities to earn fee-based income. The merger of ICICI with ICICI Bank was seen as the most strategic option for both entities, enabling scale, synergies, and a broader service portfolio.

In 2002, ICICI and its two retail finance subsidiaries merged with ICICI Bank, following approvals from shareholders, courts, and the Reserve Bank of India. This integration consolidated the group’s financial services under one entity, enhancing operational efficiency and customer reach.

Head Quarters: Mumbai, Maharastra

Managing Director: Mr. Sandeep Bakhshi

Financial Highlights

  1. Quarterly Performance:

    Metric Mar 25 Dec 24 Mar 24 YoY % QoQ %
    Revenue 79,748 74,626 67,182 ▲ 19% ▲ 7%
    Operating Profit 19,113 18,483 16,136 ▲ 19% ▲ 3%
    Profit After Tax 14,354 13,847 12,200 ▲ 18% ▲ 4%

    Insights:

    1. Net profit rose 18% YoY to ₹12,630 crore in Q4 with net interest income growing 11% YoY to ₹21,193 crore. Net Interest Margin stood at 4.41%.
    2. Deposits grew 14% YoY to ₹16.1 lakh crore while domestic loans grew 13.9% YoY, led by business banking (33.7% growth) and retail loans (8.9% growth).
    3. Asset quality improved with net NPAs declining to 0.39% (from 0.42% in Q3) and provisions reducing to ₹891 crore.
    4. Expansion continued with 241 new branches added in Q4 (total 6,983 branches) alongside ongoing digital investments.
    5. Strong capital position with CET-1 ratio at 15.94% and ₹11 per share dividend recommended for FY25.
  2. Segment Wise Revenue

  3. Geography Revenue

Key Ratios

Ratio Q4 FY25 Industry Benchmark Remarks
EPS 72.4 75-100 ⚠️ Slightly below – Still indicates strong earnings.
P/E Ratio 19.73 16-22 ✔️ Well-valued – PE is comfortably within industry range.
Return on Assets (RoA) 2.40% 1.8-2.2% ✔️ Strong – Outperforms peers in asset efficiency.
Return on Equity (RoE) 18% 13-17% ✔️ Very strong – Indicates excellent shareholder returns.
DE Ratio 5.97 5-7 ✔️ Optimal – Well-positioned in the acceptable leverage range.
NIM (%) 4.32 3.5-4.5% ✔️ Healthy – Indicates efficient interest margin management.

Management Updates

  1. 🏛️ Economic Support and Structural Reforms: The management highlighted that the Indian economy continues to benefit from structural reforms and policy measures aimed at maintaining macroeconomic stability and supporting growth, despite 🌍 global headwinds and a volatile external environment.
  2. 📈 Focus on Risk-Calibrated Growth: ICICI Bank emphasized its strategic focus on risk-calibrated profitable growth, prioritizing 🛡️ governance, 👥 customer-centric approaches, and 🌐 ecosystem opportunities while being mindful of ⚠️ emerging risks.
  3. 💰🔁 Deposit and Loan Growth Alignment: The management noted that deposit and loan growth must move in tandem, with 💵 competitive pricing and 📊 market dynamics influencing growth rates. They expect both to align with overall market conditions.
  4. ✅ Stable Asset Quality: The bank reported stable asset quality, with 📉 net NPA ratios improving slightly. 🌾 Retail and rural portfolios showed recoveries, while 🏢 corporate and business banking segments remained resilient.
  5. 📉🏦 Impact of Rate Cuts on Margins: The management acknowledged that net interest margins (NIMs) would be influenced by 🏦 repo rate cuts, with 🔁 loan repricing happening faster than 🕰️ deposit adjustments. They expect margins to align with broader banking system trends while leveraging 🏛️ franchise strengths to optimize profitability.
Management Guidance:
 
Key Focus Area Guidance/Target Current Status Timeline
Net Interest Margin (NIM) NIM > 4.3% 4.41% FY2025-26
Loan Growth 13-15% YoY Growth 13.9% Ongoing
Asset Quality Below 0.5% 0.39% Quarterly monitoring
Deposit Growth 14% YoY growth 14% FY2025-26

Shareholding Pattern

Category Mar 2024 Dec 2024 Mar 2025 YoY Change QoQ Change
FIIs 44.77% 45.70% 45.83% ▲ +1.06% ▲ +0.13%
DIIs 45.10% 44.95% 44.77% ▼ -0.33% ▼ -0.18%
Government 0.28% 0.27% 0.27% ▼ -0.01%
Public 9.84% 9.08% 9.12% ▼ -0.72% ▲ +0.04%

Red Flags

Red Flag Parameter Status Severity
Management Changes No Changes
Auditor Exit No Changes
Credit Rating No Changes
Share Holding Pattern No Major Changes
Liquidity Adequate

Conclusion

ICICI Bank's strong financial performance for Q4 FY2025, marked by robust growth in key metrics such as net interest income, fee income, and profit after tax. The bank maintained stable asset quality with a declining net NPA ratio and prudent provisioning. However, challenges like moderating retail loan growth, competitive deposit pricing, and global economic uncertainties were noted.

Key Positives:

  • Net interest income grew 11% YoY with NIM at 4.41%, and profit after tax rose 18% YoY.
  • Net NPA ratio improved to 0.39%, supported by strong recoveries and contingency provisions.
  • Business banking and deposits grew robustly (33.7% and 14% YoY, respectively).

Key Negatives:

  • Retail loan growth slowed sharply (8.9% YoY), especially in unsecured segments.
  • Expected rate cuts may pressure NIMs due to high loan linkage to external benchmarks.
  • Global uncertainties and aggressive competition pose risks to growth and pricing.

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