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Deposits grew faster than the systemic growth, driven by advanced digital banking and a strong branch network
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FRANCIS MASCARENHAS
ICICI Bank will likely post stable growth in loans and deposits, aiding nearly double digit growth in core income in Q4FY25, analysts say. The bank will report its Q4 earnings results on April 19.
According to brokerage Motilal Oswal, the lender has showed sharp resilience, posting 17 per cent CAGR in loans over FY22-24 period, led by retail loans, business loans, and small and medium enterprises (SME) segments. The bank’s strategic use of data analytics to refine customer onboarding and credit evaluation has been a ‘game-changer’ in sustaining this momentum, it said.
Deposits grew faster than the systemic growth, it said, driven by advanced digital banking and a strong branch network, though low-cost deposits growth struggles, with current and savings account (CASA) ratio standing at40.5 per cent in Q3FY25, amid high rates.
Per Axis Securities, ICICI Bank’s net interest margin will move with a negative bias. Asset quality, however, shall remain stable with lower credit cost. The brokerage expects ICICI Bank’s net interest income to grow 9 per cent year-on-year (y-o-y) in Q4 to ₹20,865 crore, while non-interest income is likely to rise 25 per cent y-o-y at ₹7,046 crore. The bank’s net profit is seen rising 13 per cent on-year to ₹12,070 crore in Q4.
The brokerage said ICICI Bank management’s commentary on NIM outlook, along with growth strategy in unsecured loan segment will be the key monitorables during Q4.
“NIMs have been under pressure with current NIMs at 4.25 per cent, down from 18bp YoY over the past year. Though the pace of decline has tapered, the bank anticipates near-term stability,” Motilal Oswal said.
Published on April 18, 2025
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