ICICI Bank has announced its financial results for the fourth quarter of FY 2024 and these numbers have surprised the market in a big way. Even though the worldwide economy is going through demanding situations like rising interest charges and inflation, ICICI Bank has managed to supply a sturdy boom in profit, mortgage ebooks, and asset fines. The bank’s regular overall performance has also caused multiple brokerage enhancements, with professionals elevating their charge targets on ICICI Bank shares.
ICICI Bank’s Profit Rises by 17% in Q4
In the January to March 2024 zone, ICICI Bank suggested a 17% 12 months-on-year increase in its standalone internet earnings. The financial institution earned ₹11,672 crore in profit, which became better than market analysts expected.
This strong performance was supported by sustained loan growth and a reduction in provisions for bad loans. The bank’s net interest income (NII), which is the difference between interest earned from loans and interest paid to depositors, improved by using 8.1% to ₹19,093 crore at some stage in the identical period. This reflects the efficient business practices of the financial institution, even when market conditions are not the best.
Asset Quality Improves Further
The highlight of ICICI Bank’s fourth-quarter results is the improvement in its asset satisfaction. The gross non-acting belongings (GNPA) ratio, which displays the proportion of terrible loans in the overall loan portfolio, dropped to 2.16% in March 2024, compared to 2.30% in December 2023.
Similarly, the net non-performing asset (NNPA) ratio increased from 0.44% to 0.42%. This improvement in asset quality is a result of the financial institution’s cautious lending practices and sturdy recovery efforts for terrible loans. A lower NPA ratio increases investor confidence as it means the bank has fewer bad loans in its books.
Brokerage Firms Give Positive Ratings
After searching at those strong numbers, numerous leading brokerage corporations have upgraded their outlook for ICICI Bank. International brokerage houses like Morgan Stanley, CLSA, and Jefferies have given fantastic hints for ICICI Bank’s shares. They have additionally raised their goal costs, looking forward to the inventory to perform nicely in the coming months.
Experts consider ICICI Bank’s solid stability sheet, consistent awareness of retail loans, and improving asset quality to make it a reliable and attractive stock for investors. With constant profits and reduced dangers, the financial institution is in a sturdy position to keep its growth in the financial year 2025 properly.
Conclusion
ICICI Bank’s fourth-quarter results for FY24 have proved the bank’s ability to perform strongly even in difficult market situations. With a 17% rise in profits, steady loan growth, improved asset quality, and positive brokerage upgrades, ICICI Bank continues to be one of the top-performing private sector banks in India.
