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Informist, Saturday, Oct. 26, 2024

 

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--ICICI Bank: Jul-Sept net interest margin at 4.27% vs 4.36% qtr ago 
--ICICI Bank: Expect credit, deposit growth to be in tandem 
--ICICI Bank: Clearly seeing moderation in personal loan book growth 
--ICICI Bank: Exposure to microfinance not material, but will monitor it 
--ICICI Bank: Comfortable with quality of personal, credit card book 
--ICICI Bank: Personal loan book growth down at 17.3% Sept 30 vs 40% yr ago 
--ICICI Bank: Personal, credit card book forms 14% of total book 

 

By Kshipra Petkar and Cassandra Carvalho

 

MUMBAI – ICICI Bank expects net interest margins to remain stable until the Reserve Bank of India cuts the repo rate, Executive Director Sandeep Batra said in a post-earnings media call on Saturday. The bank's net interest margin moderated to 4.27% in Jul-Sept from 4.36% a quarter ago and 4.53% a year ago.

 

"Till the rate cut cycle starts, expectations for the near term is that NIMS would be stable. And as I did mention, our overall objective is to maximise overall profitability through optimising various levers, which includes NIM as one of the anchors," Batra said.

 

 

On growth in the unsecured book, which includes personal loans and credit cards, Batra said this accounted for 14% of the total loan book and the bank was comfortable with the growth in this segment.

 

According to an investor presentation by the bank, its personal loans grew 17.3% on year to INR 1.23 trillion and the credit card book grew 27.9% on year to INR 552.81 billion as of September-end. "As you see, the personal loan growth in this quarter year on, grew by about 17.3% and the credit card grew by about 28%. There has been a moderation in rate of growth. In fact, if you look at what was the growth rate in June was about 25% and in September 2023 was about 40%. So, credit cards have largely been growing about in the same range. So, clearly there has been a moderation," Batra said.

 

On the microfinance book, Batra said the total exposure to this segment was not really material, and it was well within the bank's threshold.

 

Batra said he expects credit and deposit growth to be in tandem going forward. The bank's total advances were up 15% on year at 12.77 trillion, and total deposits were up 15.7% at 14.98 trillion as on Sept. 30.

 

On Saturday, the bank reported a net profit of INR 117.46 billion for Jul-Sept, with net interest income at INR 200.48 billion, up 9.5% on year. On the National Stock Exchange, shares of ICICI Bank closed 0.2% higher at INR 1,255.45 on Friday.  End

 

Edited by Avishek Dutta

 

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