ICICI Bank Board Proposes Rs 11 Dividend After Q4 Results

ICICI Bank has announced a dividend of Rs 11 per share for the financial year 2024-25, following impressive financial results for the fourth quarter. The bank reported an 18% year-on-year increase in standalone net profit, reaching Rs 12,630 crore for the January-March quarter, compared to Rs 10,708 crore in the same period last year. On a consolidated basis, net profit rose by 15.7% to Rs 13,502 crore, driven by strong lending growth and healthy net interest income.

Strong Financial Performance

ICICI Bank’s robust financial performance in the fourth quarter is underscored by a significant increase in its standalone net profit. The bank’s net profit surged to Rs 12,630 crore, marking an 18% rise from the previous year. This growth is attributed to a steady increase in lending activities and a healthy rise in net interest income (NII), which climbed 11% year-on-year to Rs 21,193 crore. The loan book expanded by 13.3%, contributing to a slight increase in the net interest margin (NIM), which rose to 4.41% from 4.40% a year earlier. However, the bank has indicated that it may face margin pressures in the near future due to expected rate cuts by the Reserve Bank of India.

Loan Portfolio and Retail Credit Trends

Executive Director Sandeep Batra highlighted that 53% of ICICI Bank’s loan portfolio is linked to the repo rate, with full transmission of lower rates anticipated within three months. The bank has been cautious in its unsecured lending, adhering to guidelines from the Reserve Bank of India, which has resulted in a slowdown in credit card and personal loan growth. Retail asset slippages for the quarter amounted to Rs 4,300 crore, with delinquencies in unsecured loans remaining elevated, now constituting 13% of the bank’s overall loan book. This cautious approach reflects the bank’s commitment to maintaining asset quality while navigating the changing lending landscape.

Deposits and Branch Expansion Plans

On the deposit front, ICICI Bank reported a steady share of current and savings accounts (CASA) at 38.4%, with total deposits growing by 14%. In response to the evolving interest rate environment, the bank has recently reduced its savings account rate by 0.25 percentage points. Additionally, ICICI Bank plans to expand its footprint by opening 400 new branches in the upcoming year, aiming to enhance its customer reach and service capabilities. This expansion is part of the bank’s strategy to strengthen its position in the competitive banking sector.

Subsidiary Performance and Asset Quality

ICICI Bank’s subsidiaries have also shown impressive growth. The life insurance arm reported a profit of Rs 1,189 crore, up from Rs 852 crore the previous year. The general insurance business experienced a 30% increase in net profit, reaching Rs 2,508 crore, while the asset management division saw profits rise by 29% to Rs 2,651 crore. Furthermore, the bank’s asset quality improved, with the gross non-performing asset (GNPA) ratio decreasing to 1.67% at the end of March, down from 1.96% in December 2024. The bank’s capital adequacy ratio remains strong at 16.55%, with core equity capital (CET-1) at 15.94% as of March 31, 2025, providing a solid foundation for future growth and stability.

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