ICICI Bank, one of India's leading private sector lenders, has reported a substantial increase in its financial performance for the fourth quarter of the fiscal year 2025, showcasing resilience amid a challenging economic landscape. The bank announced a standalone net profit of ₹12,630 crore for the quarter ended March 31, 2025, marking an impressive 18% year-on-year growth compared to ₹10,707.53 crore during the same period last year.
For the full financial year 2025, ICICI Bank's profit after tax surged by 15.5% to ₹47,227 crore, equivalent to approximately $5.5 billion. This growth has been attributed to a combination of increased net interest income and improved asset quality, alongside a robust performance in non-interest income streams.
The bank's net interest income (NII) rose by 11% to ₹21,193 crore in Q4 FY25 from ₹19,093 crore a year earlier, thanks in part to a net interest margin (NIM) of 4.41%, which is an increase from 4.25% in the previous quarter. The NIM for the entire fiscal year stood at 4.32%, reflecting a consistent performance in lending activities.
ICICI Bank's total period-end deposits grew by 14% year-on-year to reach ₹16.10 lakh crore as of March 31, 2025. The average deposits also saw a significant increase of 11.4%, amounting to ₹14.86 lakh crore in Q4 FY25. The average current account and savings account (CASA) ratio was recorded at 38.4% during this quarter, indicating a healthy deposit mix.
On the lending front, the domestic loan portfolio expanded by 13.9% year-on-year to nearly ₹13.11 lakh crore. The growth in retail loans was particularly noteworthy, with the retail loan portfolio comprising 52.4% of the total loan portfolio as of March 31, 2025. This growth reflects the bank's strategy to enhance its retail lending capabilities, which has proven to be a significant driver of profitability.
ICICI Bank also reported a strong performance in non-interest income, which increased by 18.4% year-on-year to ₹7,021 crore in Q4 FY25, driven primarily by a rise in fee income, which grew by 16% to ₹6,306 crore from ₹5,436 crore in the same quarter of the previous year. This diversification of income sources has helped bolster the bank's overall financial health.
In terms of asset quality, the bank's net non-performing asset (NPA) ratio improved to 0.39% from 0.42% sequentially, reflecting effective management of bad loans. The provisioning coverage ratio on non-performing loans remained steady at 76.2% as of March 31, 2025. The bank's gross NPAs dropped to ₹5,142 crore, with recoveries and upgrades amounting to ₹3,817 crore during the quarter.
Despite the positive trends, ICICI Bank has increased its provisions for bad loans by nearly 24% to ₹890.7 crore for the quarter, up from ₹718.49 crore a year ago. This proactive approach to provisioning demonstrates the bank's commitment to maintaining a strong balance sheet and mitigating potential credit risks.
Additionally, ICICI Bank's board of directors has recommended a dividend of ₹11 per share for FY25, subject to requisite approvals at the upcoming Annual General Meeting (AGM). The dividend announcement reflects the bank's strong financial position and its intention to return value to shareholders.
On the stock market front, ICICI Bank shares closed 3.7% higher at ₹1,406.65 on April 17, 2025, signaling positive investor sentiment following the earnings release. Over the past five years, the bank's shares have provided investors with over 274% returns, and a remarkable 31.83% return in the last year alone. Year-to-date, the stock has gained 9.61% in 2025, highlighting the bank's strong market performance.
Overall, ICICI Bank's latest results underscore its robust operational performance and adaptability in a dynamic economic environment. The bank's focus on enhancing its retail lending portfolio, coupled with effective risk management strategies, positions it well for continued growth in the future. As it navigates the challenges of the financial landscape, ICICI Bank remains committed to delivering sustainable value to its stakeholders.
