ICICI Bank Declares Attractive Dividend of ₹11 Per Share for Investors

ICICI Bank Ltd., a prominent player in the private banking sector, has made headlines by proposing a dividend of Rs 11 per share. This decision comes on the heels of a remarkable 18% year-on-year profit increase, fueled by robust loan growth and an uptick in net interest income. The bank disclosed this information in an exchange notification on Saturday, emphasizing that the dividend will require approvals from its members during the upcoming Annual General Meeting (AGM).

Strong Financial Performance

In the latest quarter ending in March, ICICI Bank reported a net interest income of Rs 21,193 crore, marking an 11% rise compared to the previous year. This growth has led to an improved net interest margin, which climbed to 4.41% in the January-March period, up from 4.25% a quarter earlier and 4.40% a year ago.

Key Financial Highlights:
- Net Interest Income: Rs 21,193 crore (up 11% YoY)
- Net Interest Margin: 4.41% (from 4.25% QoQ)
- Gross NPA Ratio: 1.67% (down from 1.96% QoQ)
- Net NPA Ratio: 0.39% (down from 0.42% QoQ)

Asset Quality and Loan Write-Offs

The private lender has also shown significant improvement in its asset quality. As of March 31, the gross non-performing assets (NPAs) ratio decreased to 1.67%, a notable decline from 1.96% in the previous quarter. Additionally, the net NPA ratio fell to 0.39% from 0.42%.

During the quarter, ICICI Bank undertook the write-off of loans amounting to Rs 2,118 crore and sold off loans worth Rs 2,786 crore. These actions reflect the bank’s strategic management of its loan portfolio.

Growth in Advances and Deposits

The bank’s total advances surged by over 13% year-on-year, reaching Rs 13.41 lakh crore. Meanwhile, deposits also saw a healthy increase of 14%, totaling Rs 16.10 lakh crore. This growth trajectory underscores the bank’s strong position in the market.

In summary, ICICI Bank’s impressive financial results and its proposed dividend highlight its ongoing commitment to delivering value to shareholders while maintaining sound asset quality and robust growth in loans and deposits. As the AGM approaches, stakeholders will await the final decision on the dividend, which is contingent upon member approvals.