Strong Q4 Performance Surpasses Market Expectations Amid Broad-Based Growth
ICICI Bank, India’s second-largest private sector lender, reported a robust financial performance for the fourth quarter of fiscal year 2024–25, registering an 18% year-on-year (YoY) growth in standalone net profit to ₹12,629.58 crore. This figure outpaced analysts’ expectations, which had estimated a net profit of approximately ₹12,050 crore, according to a Moneycontrol survey. On a sequential basis, the bank saw a 7.1% increase in net profit. The strong bottom-line performance was supported by healthy growth in core income and improved asset quality. The bank’s board has also declared a dividend of ₹11 per equity share with a face value of ₹2, subject to shareholder approval at the upcoming Annual General Meeting.
Highlights:
Net profit rose 18% YoY to ₹12,629.58 crore in Q4FY25
Surpassed analysts’ estimates of ₹12,050 crore
Dividend of ₹11 per share declared
Asset Quality Shows Further Improvement with Lower GNPA and NNPA Ratios
ICICI Bank demonstrated a significant improvement in asset quality in the March quarter. The gross non-performing asset (GNPA) ratio declined to 1.67% as of March 31, 2025, down from 1.96% in the preceding quarter and 2.16% in the corresponding quarter of the previous year. The net NPA (NNPA) ratio also improved, dropping to 0.39% in Q4FY25 from 0.42% a quarter ago and 0.42% a year earlier. In absolute terms, gross NPAs decreased to ₹24,166.18 crore from ₹27,745.33 crore at the end of December 2024 and ₹27,961.68 crore at the end of March 2024. The provisioning coverage ratio (PCR) on non-performing loans remained strong at 76.2% at the end of the fiscal year, reflecting the bank’s prudent risk management.
Highlights:
GNPA ratio declined to 1.67% from 1.96% QoQ
NNPA ratio dropped to 0.39%, down from 0.42%
Gross NPAs reduced to ₹24,166 crore; PCR at 76.2%
Provisioning Rises as a Precautionary Measure Despite Better Asset Quality
Despite the improvement in asset quality metrics, ICICI Bank increased its provisions (excluding tax) to ₹891 crore in Q4FY25, up from ₹718 crore in Q4FY24. However, this was significantly lower than the ₹1,227 crore set aside in the previous quarter, Q3FY25. The increase in provisions on a YoY basis reflects the bank’s cautious stance in light of evolving macroeconomic conditions, while the sequential decline aligns with the better quality of the loan book. The rise in provisioning even amid declining NPAs points to a conservative approach aimed at maintaining robust financial buffers.
Highlights:
Q4FY25 provisions rose to ₹891 crore, up from ₹718 crore YoY
Sequential decline from ₹1,227 crore in Q3FY25
Continued conservative provisioning strategy
Deposit Base Expands Steadily; Strong Growth in Average and CASA Deposits
ICICI Bank’s total deposits grew by 14% YoY and 5.9% QoQ, reaching ₹16.11 lakh crore as of March 31, 2025. Average deposits for the quarter rose 11.4% YoY and 1.9% sequentially to ₹14.87 lakh crore. Average current account deposits increased by 9.6% YoY and 1.4% QoQ, while average savings account deposits saw a 10.1% YoY rise and a marginal 0.2% sequential increase. The consistent growth in the deposit base highlights customer confidence and sustained retail traction. The bank continued expanding its physical presence, adding 241 branches during Q4FY25. As of the quarter-end, ICICI Bank operated a network of 6,983 branches and 16,285 ATMs and cash recycling machines across India.
Highlights:
Total deposits at ₹16.11 lakh crore, up 14% YoY
Average deposits rose 11.4% YoY to ₹14.87 lakh crore
241 new branches added; branch network at 6,983
Advances Rise on Back of Retail, Business Banking Segments
The bank’s total advances grew by 13.3% YoY and 2.1% QoQ to ₹13.42 lakh crore as of March 31, 2025. Net domestic advances witnessed a 13.9% YoY increase and 2.2% sequential rise. The retail loan book, which comprised 52.4% of total loans, grew by 8.9% YoY and 2.0% QoQ. Including non-fund-based exposures, the retail portfolio accounted for 43.8% of the total. The business banking portfolio showed robust momentum with a 33.7% YoY and 6.2% sequential jump. However, the rural portfolio posted a modest 5.1% YoY increase and a 1.5% sequential decline. The domestic corporate loan portfolio also grew 11.9% YoY but declined slightly by 0.4% on a sequential basis.
Highlights:
Total advances up 13.3% YoY to ₹13.42 lakh crore
Retail loans comprise 52.4% of total book
Business banking rose 33.7% YoY; rural lending saw a minor sequential decline
Net Interest Income Climbs Double Digits; Margins Hold Strong
ICICI Bank reported an 11% YoY rise in net interest income (NII) to ₹21,193 crore in Q4FY25, compared to ₹19,093 crore in Q4FY24. On a sequential basis, the NII also showed solid growth, reflecting healthy credit expansion and stable funding costs. Net interest margin (NIM) for Q4FY25 stood at 4.41%, slightly higher than 4.25% in Q3FY25 and largely stable compared to 4.40% in Q4FY24. For the full fiscal year, the NIM was recorded at 4.32%, indicating consistent margin performance amid varying interest rate cycles and competitive pressures.
Highlights:
NII rose 11% YoY to ₹21,193 crore
NIM stood at 4.41% in Q4FY25, up from 4.25% in Q3FY25
FY25 NIM sustained at 4.32%
Stock Performance Reflects Investor Confidence Ahead of Earnings Release
ICICI Bank shares witnessed a significant uptick ahead of the Q4 earnings release, rising 3.73% to close at ₹1,407 on the National Stock Exchange (NSE) on Thursday. The rally reflected positive investor sentiment driven by expectations of strong quarterly performance and robust guidance. The declaration of an ₹11 per share dividend further bolstered market confidence, indicating management’s commitment to delivering shareholder returns alongside capital growth.
Highlights:
ICICI Bank stock closed 3.73% higher at ₹1,407 on NSE
Dividend declaration adds to investor optimism
Positive sentiment driven by strong financial results
