ICICI Bank, Yes Bank shares jump post Q3 results

Shares of ICICI Bank Ltd rose as much as 2% in intraday trade on Monday after the lender reported a 15% jump in net profit to ₹11,792 crore for the quarter ended December 31, 2024. This comes even as broader benchmark indices, the BSE Sensex and the Nifty 50, fell nearly 1%.

The private lender’s net interest income (NII) increased by 9.1% year-on-year to ₹20,371 crore in the third quarter of 2024-25 from ₹18,678 crore in the corresponding period a year ago. ICICI Bank’s The net interest margin was 4.25% in Q3 FY25 compared to 4.27% in Q2 FY25 and 4.43% in Q3 FY24.

Shares of ICICI Bank rose 1.9% in intraday trade to hit a high of ₹1,232.55 on the BSE, taking the company’s market cap to ₹8.68 lakh crore.

ICICI Bank’s net domestic advances grew by 15.1% year-on-year and 3.2% sequentially at December 31, 2024. The retail loan portfolio grew by 10.5% year-on-year and 1.4% sequentially, and comprised 52.4% of the total loan portfolio at December 31, 2024. The business banking portfolio grew by 31.9% year-on-year and 6.4% sequentially at December 31, 2024. The rural portfolio grew by 12.2% year-on-year and 0.9% sequentially at December 31, 2024. The domestic corporate portfolio grew by 13.2% year-on-year and 4.3% sequentially at December 31, 2024. Total advances increased by 13.9% year-on-year and 2.9% sequentially to ₹13,14,366 crore at December 31, 2024.

The gross NPA ratio was 1.96% at December 31, 2024 compared to 1.97% at September 30, 2024. The net NPA ratio was 0.42% at December 31, 2024 compared to 0.42% at September 30, 2024.

Meanwhile, shares of another private lender, Yes Bank, rose 3% to hit a high of ₹18.87 on the BSE after the bank reported a net profit of ₹612 crore for the third quarter, an increase of 164% compared to ₹231 crore in the corresponding period last year. Net interest income of the lender grew 10% year-on-year to ₹2,224 crore in Q3 FY25

“Q3FY25 is the fifth quarter in a row where the bank has demonstrated sustained sequential expansion in profitability. The RoA of the Bank has also expanded to 0.6% from 0.5%, reported over the last 3 quarters. It is quite encouraging that we have also started seeing expansion in our operating profitability,” said Prashant Kumar, Managing Director and CEO, Yes Bank.

“Two distinct trends which I think are important to highlight in terms of trajectory of the bank’s profitability going forward are, 1) reduction in balances of deposits placed in lieu of PSL shortfalls to 8.5% of Assets this quarter, from 10.4% of Assets in Q2FY25, and 2) fresh slippages in Retail Segment remaining flat on Q-o-Q basis. Both of these are in line with our earlier guidance, and while one of the factors is likely to aid expansion in Net Interest Margins and Operating Profits, the other may likely result in reduction of gross credit costs,” said Kumar.