ICICI Bank(US:IBN)2024-01-23 15:06Financial Data and Key Metrics Changes - The consolidated profit after tax grew by 25.7% year-on-year to INR 110.53 billion in this quarter [15] - Net interest income increased by 13.4% year-on-year to INR 186.78 billion, with a net interest margin of 4.43% [40] - The total provisions during the quarter were INR 10.5 billion, representing 7.2% of core operating profit [46] Business Line Data and Key Metrics Changes - The retail loan portfolio grew by 21.4% year-on-year and 4.5% sequentially, while the business banking portfolio grew by 31.9% year-on-year [55] - The credit card portfolio grew by 39.5% year-on-year and 11.5% sequentially [33] - The gross NPA additions from the retail, rural, and business banking portfolio were INR 54.82 billion, compared to INR 43.64 billion in the previous quarter [36] Market Data and Key Metrics Changes - The domestic loan portfolio grew by 18.8% year-on-year and 3.8% sequentially [55] - The overseas loan portfolio in U.S. dollar terms increased by 9.8% year-on-year [34] - The net NPA ratio was 0.44% at December 31, 2023, compared to 0.43% at September 30, 2023 [68] Company Strategy and Development Direction - The company focuses on growing risk-calibrated core operating profit through digital offerings and technology [7] - The strategic framework includes strengthening the franchise and expanding technology and digital offerings [65] - The company aims to deliver holistic solutions to customers and grow market share across key segments [58] Management Comments on Operating Environment and Future Outlook - The Indian economy remains resilient, with upward revisions in GDP growth estimates [53] - Management expects credit costs to remain low for the next few quarters, with gradual normalization upwards [31] - The company is focused on maintaining a strong balance sheet with prudent provisioning and healthy levels of capital [70] Other Important Information - The provisioning coverage on NPAs was 80.7% as of December 31, 2023 [47] - The total outstanding loans to NBFCs and HFCs were about 6.8% of advances at December 31, 2023 [13] - The bank's average liquidity coverage ratio for the quarter was about 121% [66] Q&A Session Summary Question: Comments on operating expenses growth - Management noted that non-employee expenses are growing in line with business, while employee expenses growth has slowed down [23][25] Question: Asset quality and slippages in retail banking - Management indicated that slippages are spread across products and are not particularly meaningful relative to the portfolio size [29] Question: Future credit costs outlook - Management suggested that credit costs are expected to remain low, with no imminent spikes anticipated [31] Question: Incremental cost of deposits - Management did not provide specific numbers but indicated that the cost of deposits has increased and may continue to do so [32][62] Question: Competitive intensity in unsecured products - Management acknowledged ongoing competitive intensity in rates and emphasized a disciplined pricing approach [95]