ICICI Bank has reported impressive financial results for the fourth quarter of fiscal year 2025, showing a significant growth trajectory that has captured the attention of investors and analysts alike. The bank's profit is expected to grow by 12.5% year-on-year, reaching ₹12,050 crore compared to ₹10,707 crore in the same quarter last year. This growth is underpinned by a robust net interest income (NII), projected to rise between 7.6% and 11% during the quarter.
On April 17, 2025, ICICI Bank's shares soared to a record high of ₹1,408.60 apiece on the Bombay Stock Exchange (BSE), reflecting investor confidence and a bullish market sentiment. Analysts attribute this surge to the bank's healthy margins, which are expected to benefit from a recent cut in the cash reserve ratio (CRR) and a sequential decline in loan slippages.
Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of ICICI Bank at 'BB+', indicating an elevated vulnerability to default risk. However, the agency noted that India's strong medium-term growth potential and its large, diversified economy are reflected in its operating environment score. Fitch anticipates a moderate increase in ICICI's loan-to-deposit ratio as the bank seeks to balance loan and deposit growth.
Analysts predict that ICICI Bank's return on assets (RoA) will reach 2.2% and return on equity (RoE) will hit 17% by FY27. These metrics underscore the bank's competitive edge in profitability compared to its peers in the banking sector.
In a strategic move, ICICI Bank announced on April 16, 2025, that it would cut its savings account deposit interest rate by 0.25%. This decision follows a similar move by larger rival HDFC Bank and comes amid a trend of cuts in deposit offerings after the Reserve Bank of India (RBI) implemented two consecutive rate reductions.
Furthermore, on April 1, 2025, ICICI Bank disclosed plans to divest its entire 19% stake in ICICI Merchant Services Private Limited. The bank has entered into a share purchase agreement with First Data Holding I (Netherlands) B.V., along with its subsidiaries, to facilitate this sale.
For the quarter ended December 2024, ICICI Bank reported a 15% increase in standalone net profit to ₹11,792 crore, bolstered by growth in core income. Total income surged to ₹48,368 crore, up from ₹42,792 crore during the same period the previous year. The NII also saw a year-on-year increase of 9.1%, reaching ₹20,371 crore.
Core operating profit for the December quarter grew by 13.1% to ₹16,516 crore, compared to ₹14,601 crore in the third quarter of the previous fiscal year. The bank's asset quality has shown improvement, with the gross non-performing assets (NPAs) ratio declining to 1.96%, down from 2.3% a year ago. Similarly, net NPAs fell to 0.42% from 0.44% at the end of the third quarter of the last fiscal year.
The positive sentiment surrounding ICICI Bank has contributed to a broader rally in banking shares. On April 18, 2025, banking stocks experienced a significant uptick, with the BSE BANKEX index rising by 2.56% to reach 62,293.27 levels, driven by robust buying activity.
Looking at the full fiscal year 2025, ICICI Bank reported a profit before tax, excluding treasury, of ₹60,713 crore (approximately US$7.1 billion), marking an increase of 11.4% compared to the previous year. Core operating profit for the year also rose by 12.5% to ₹65,396 crore (about US$7.6 billion). The bank's profit after tax for the year stood at ₹47,227 crore (around US$5.5 billion), reflecting a year-on-year growth of 15.5%.
In summary, ICICI Bank's impressive financial performance, characterized by strong profit growth, healthy margins, and improved asset quality, positions it favorably in the competitive banking landscape. As the bank continues to navigate the evolving financial environment, its strategic initiatives and robust growth metrics are likely to sustain investor confidence and market interest.
