ICICI Bank Ltd Q3 FY25: Transforming Banking Through Innovation and Growth
ICICI Bank Ltd: Overview
ICICI Bank Ltd., one of India’s largest private-sector banks, was established in 1994 and is headquartered in Mumbai, Maharashtra. The bank is widely recognized for its diversified range of banking and financial services, including retail banking, wholesale banking, treasury operations, and a strong emphasis on digital banking. As a key player in India’s financial sector, ICICI Bank is known for its innovative approach to banking, robust risk management practices, and technological leadership. The subsidiaries are also key players in their own segments makes an extra ordinary revenue. With a vast network of over 5,000 branches and over 15,000 ATMs across India, ICICI Bank has a strong presence in both urban and rural markets, making financial services more accessible to a wide customer base.
The bank has consistently focused on technological advancement and has been at the forefront of the digital banking revolution in India, offering innovative solutions such as mobile banking, internet banking, and digital payment services. India’s banking industry continues to grow due to factors like increasing digital adoption, rising credit demand, and initiatives for financial inclusion. ICICI Bank is strategically well-positioned to capitalize on these growth opportunities, thanks to its established brand reputation, extensive reach, and emphasis on retail banking and digital transformation.
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In the third quarter of FY25, ICICI Bank demonstrated improved asset quality as its gross non-performing assets (NPA) ratio declined to 2.3% from 2.48% in the preceding quarter, primarily due to recoveries of ₹5,015 crore from bad debts. Additionally, write-offs during the quarter reduced to ₹1,425 crore, reflecting better management of non-performing assets. The bank continued to expand its physical presence, adding 129 new branches in the quarter and a total of 375 branches over the last 12 months. Its domestic loan portfolio grew significantly by 15.1% year-on-year, while the retail loan portfolio posted a 10.5% year-on-year growth, accounting for 43.1% of the bank’s overall loan portfolio.
Notably, the credit card portfolio witnessed a strong 17.9% year-on-year growth, although the personal loan portfolio experienced a slowdown in growth. In a strategic move, the bank divested its stake in the merchant acquiring business joint venture to First Data, with plans to bring the process under its in-house operations. However, treasury operations gains saw a decline, amounting to ₹681 crore for FY25, of which ₹375 crore was recorded in the current quarter. This performance highlights the bank’s ongoing efforts to strengthen its asset quality, expand its business footprint, and streamline operations to enhance overall efficiency.
Business Segments
- Wholesale Banking: The wholesale banking segment caters to corporate clients, large businesses, and medium-sized enterprises. ICICI Bank offers a very wide range of services, which includes working capital financing, trade finance, cash management, and corporate lending. Through its strong relationships with businesses and industries, the bank is able to provide tailored solutions to meet the diverse financing needs of corporates.
- Retail Banking: Retail banking is the cornerstone of ICICI Bank’s operations, contributing significantly to its revenue and profitability. The bank provides a wide array of services, including personal loans, home loans, auto loans, credit cards, savings and current accounts, and insurance products. ICICI Bank has made a name for itself by offering competitive interest rates and comprehensive solutions that cater to the diverse needs of individual customers. ICICI’s “iMobile” app and its digital payment systems, such as ICICI Pay, have made banking more convenient for millions of customers.
- Treasury: ICICI Bank’s treasury division manages its investment portfolio, liquidity, and foreign exchange activities. The treasury division plays an essential role in optimizing returns while ensuring liquidity for the bank’s operations. The Bank is dealing in debt markets, equity, foreign exchange markets, and derivative products to maximize profitability and manage risk effectively.
- Digital & Payments Business: ICICI Bank has established itself as a leader in India’s digital banking landscape, offering cutting-edge services that include mobile banking, internet banking, and digital payment solutions. The bank’s “Digital Banking 2.0” initiative has transformed the customer experience, making banking services more accessible, faster, and personalized.
Subsidiary Information:
- ICICI Prudential Life Insurance Company Ltd: ICICI Prudential Life Insurance is one of India’s leading life insurance providers, offering a comprehensive range of products, including term insurance, ULIPs, retirement plans, and health insurance. It operates in a customer-centric approach, helping individuals secure their financial futures with tailored insurance solutions. The company is well-regarded for its financial strength and commitment to providing high-quality customer service. ICICI Prudential Life Insurance leverages the digital infrastructure of ICICI Bank, enabling seamless integration of insurance products with banking services.
- ICICI Lombard General Insurance Company Ltd: ICICI Lombard is a prominent player in India’s general insurance market; it provides a range of products such as health insurance, motor insurance, travel insurance, home insurance, and commercial insurance. The company is recognized for its quick claims processing, comprehensive coverage options, and strong digital platforms for policy management and customer support. ICICI Lombard continues to innovate in the insurance space, offering customized solutions and leveraging data analytics for better risk assessment and customer experience.
- ICICI Securities Ltd: ICICI Securities is one of India’s leading investment services companies, offering a broad spectrum of services such as equity trading, mutual funds, fixed-income products, and wealth management solutions. The company provides both retail and institutional clients digital platforms for easy trading, portfolio management, and financial planning. It is also a key player in investment banking, offering services such as mergers and acquisitions, private equity, and corporate advisory. ICICI Securities focuses on providing personalized services and investment strategies, helping clients achieve long-term wealth creation goals.
- ICICI Home Finance Company Ltd: ICICI Home Finance is a subsidiary of ICICI Bank that specializes in providing housing finance products to customers. It offers home loans, loan against property, and other mortgage products designed to meet the housing needs of individuals. The company is known for offering competitive interest rates and flexible loan terms, making homeownership more accessible to a broad range of customers.
Q3 FY25 Earnings
- Revenue of ₹47037 crore in Q3 FY25 up by 15.1% YoY from ₹40865 crore in Q3 FY24.
- Financing Profit of ₹-9106 crore in this quarter at a margin of -19% compared to -8% in Q3 FY24.
- Profit of ₹13847 crore in this quarter compared to a ₹11515 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 40865 | 47037 | 121067 | 159516 |
| Interest | 19409 | 22633 | 50543 | 74108 |
| Expenses | 24929 | 33510 | 87864 | 99560 |
| Financing Profit | -3473 | -9106 | -17341 | -14152 |
| Financing Margin | -8% | -19% | -14% | -9% |
| Other Income | 18874 | 27608 | 65112 | 76522 |
| Net Profit | 11515 | 13847 | 35461 | 46081 |
| NPM | 28.2% | 29.4% | 29.3% | 28.9% |
| EPS | 15.8 | 18.3 | 48.7 | 63.1 |