Performance Review: Quarter ended December 31, 2016

January 31, 2017

  • 30% year-on-year growth in savings account deposits; Current and savings account (CASA) ratio at 49.9% at December 31, 2016
  • 18% year-on-year growth in retail portfolio; retail portfolio constituted about 49% of total loans at December 31, 2016
  • Standalone profit after tax of ₹ 2,442 crore (US$ 360 million) for quarter ended December 31, 2016 (Q3-2017)
  • Consolidated profit after tax of ₹ 2,611 crore (US$ 384 million) for Q3-2017
  • Capital adequacy ratios significantly higher than regulatory requirements; total capital adequacy of 16.73% and Tier-1 capital adequacy of 13.33% on standalone basis at December 31, 2016, including profits for the nine months ended December 31, 2016 (9M-2017)

The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the quarter ended December 31, 2016.


Profit & loss account

  • Net interest income was ₹ 5,363 crore (US$ 790 million) in the quarter ended December 31, 2016 (Q3-2017) compared to ₹ 5,453 crore (US$ 803 million) in the quarter ended December 31, 2015 (Q3-2016) and ₹ 5,253 crore (US$ 773 million) in the quarter ended September 30, 2016 (Q2- 2017).
  • Non-interest income was ₹ 3,939 crore (US$ 580 million) in Q3-2017 compared to ₹ 4,217 crore (US$ 621 million) in Q3-2016. Non-interest income in Q3-2016 included gains of ₹ 1,243 crore (US$ 183 million) relating to sale of shareholding in ICICI Prudential Life Insurance Company (ICICI Life).
  • Fee income increased 10.3% on a year-on-year basis from ₹ 2,262 crore (US$ 333 million) in Q3-2016 to ₹ 2,495 crore (US$ 367 million) in Q3-2017.
  • Profit before provisions & tax was ₹ 5,524 crore (US$ 813 million) in Q3- 2017. During Q3-2016 and Q2-2017, there were gains on sale of shareholding in ICICI Life of ₹ 1,243 crore (US$ 183 million) and ₹ 5,682 crore (US$ 836 million) respectively. Excluding these gains, profit before provisions & tax increased by 3.9% on a year-on-year basis and 11.5% on a sequential basis.
  • Standalone profit after tax was ₹ 2,442 crore (US$ 360 million) for Q3-2017.
  • Consolidated profit after tax was ₹ 2,611 crore (US$ 384 million) for Q3- 2017.

Operating review


Credit growth


The year-on-year growth in domestic advances was 12%, about seven percentage points higher compared to non-food credit growth for the banking system at December 23, 2016. The Bank continued to achieve strong growth in its retail business, resulting in a year-on-year growth of 18% in the retail portfolio. The retail portfolio constituted about 49% of the loan portfolio of the Bank at December 31, 2016, compared to 44% at December 31, 2015. Loans against Foreign Currency Non-Resident (FCNR) deposits of approximately US$ 870 million in the overseas branches portfolio matured during the quarter. Total advances increased by 5% year-on-year to ₹ 457,469 crore (US$ 67.3 billion) at December 31, 2016 from ₹ 434,800 crore (US$ 64.0 billion) at December 31, 2015.


Deposit growth


There was a significant change in banking system deposit growth after the announcement of withdrawal of legal tender of ₹ 500 and ₹ 1,000 currency notes in November 2016. During Q3-2017, there was an accretion of ₹ 26,705 crore (US$ 3.9 billion) to current and savings account (CASA) deposits. Savings account deposits increased by ₹ 18,512 crore (US$ 2.7 billion) and current account deposits increased by ₹ 8,193 crore (US$ 1.2 billion) during Q3-2017. Savings account deposits increased by 30% and current account deposits increased by 16% on a year-on-year basis at December 31, 2016. The Bank’s total CASA deposits increased by 26% year-on-year to ₹ 231,962 crore (US$ 34.1 billion) at December 31, 2016. The Bank’s CASA ratio was 49.9% at December 31, 2016 compared to 45.7% at September 30, 2016 and 45.2% at December 31, 2015. The average CASA ratio was 44.8% in Q3-2017 compared to 41.5% in Q2-2017 and 40.7% in Q3-2016. Total deposits increased by 14% year-on-year to ₹ 465,284 crore (US$ 68.5 billion) at December 31, 2016. The Bank had a network of 4,504 branches and 14,146 ATMs at December 31, 2016.


Capital adequacy


The Bank’s capital adequacy at December 31, 2016 as per RBI’s guidelines on Basel III norms was 15.98% and the Tier-1 capital adequacy was 12.55%, significantly higher than the regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the Bank for December 31, 2016 do not include the profits for 9M-2017. Including the profits for 9M-2017, the capital adequacy ratio for the Bank as per Basel III norms would have been 16.73% and the Tier I ratio would have been 13.33%.


Asset quality


Net non-performing assets at December 31, 2016 were ₹ 20,155 crore (US$ 3.0 billion) compared to ₹ 16,483 crore (US$ 2.4 billion) at September 30, 2016. The Bank’s net non-performing asset ratio was 3.96% at December 31, 2016 compared to 3.21% at September 30, 2016. Net loans to companies whose facilities have been restructured were ₹ 6,407 crore (US$ 943 million) at December 31, 2016 compared to ₹ 6,336 crore (US$ 933 million) at September 30, 2016.


Technology initiatives


During the third quarter, the Bank further enhanced its focus on launch of new technology based offerings as well as increasing customer communication and activation of digital channels for customer accounts. The Bank launched ‘Eazypay’ which is India’s first mobile app for merchants to accept payments on mobile phones through multiple modes - UPI, credit or debit cards, internet banking, and ‘Pockets’, the Bank’s digital wallet. The Bank also announced that it would transform 100 villages into ‘ICICI Digital Villages’ in 100 days. The Bank is creating a cashless ecosystem at these villages, providing vocational training to 10,000 villagers and offering them credit linkages. The Bank was India’s first bank to implement interoperable electronic toll collection. The Bank is the largest player based on number of tags issued for electronic toll collection.


The Bank’s transaction volumes through digital channels continue to grow. There was a robust increase in activation rates and transaction volumes for the Bank’s flagship mobile banking application, iMobile, and digital wallet, Pockets during November and December 2016. There has been a significant increase in volume and value of debit card and credit card transactions in November and December 2016.


In 9M-2017, non-branch channels accounted for close to 95% of all savings account transactions. Digital channels like internet, mobile banking, POS and call centre accounted for about 73% of the savings account transactions.


Consolidated results


Consolidated profit after tax was ₹ 2,611 crore (US$ 384 million) in Q3-2017 compared to ₹ 2,979 crore (US$ 439 million) in Q2-2017 and ₹ 3,122 crore (US$ 460 million) in Q3-2016.


Consolidated assets grew by 8% from ₹ 895,093 crore (US$ 131.8 billion) at December 31, 2015 to ₹ 964,417 crore (US$ 142.0 billion) at December 31, 2016.




ICICI Life announced results for 9M-2017 on January 24, 2017. ICICI Life continued to maintain its market leadership among the private sector players in 9M-2017. ICICI Life’s retail weighted received premium increased by 28% from ₹ 3,344 crore (US$ 492 million) in 9M-2016 to ₹ 4,277 crore (US$ 630 million) in 9M-2017. ICICI Life’s profit after tax was ₹ 450 crore (US$ 66 million) for Q3- 2017 compared to ₹ 436 crore (US$ 64 million) for Q3-2016.


ICICI Lombard General Insurance Company (ICICI General) maintained its leadership among the private sector players in 9M-2017. The gross written premium of ICICI General increased by 33% from ₹ 6,181 crore (US$ 0.9 billion) in 9M-2016 to ₹ 8,250 crore (US$ 1.2 billion) in 9M-2017. The profit after tax of ICICI General was ₹ 220 crore (US$ 32 million) in Q3-2017 compared to ₹ 130 crore (US$ 19 million) in Q3-2016.


The profit after tax of ICICI Prudential Asset Management Company (ICICI AMC) increased by 61% year-on-year from ₹ 82 crore (US$ 12 million) in Q3-2016 to ₹ 132 crore (US$ 20 million) in Q3-2017. ICICI AMC continues to be the largest mutual fund in India based on average assets under management for Q3-2017.


The profit after tax of ICICI Securities was at ₹ 88 crore (US$ 13 million) in Q3- 2017 compared to ₹ 55 crore (US$ 8 million) in Q3-2016. The profit after tax of ICICI Securities Primary Dealership was ₹ 182 crore (US$ 27 million) in Q3- 2017 compared to ₹ 63 crore (US$ 9 million) in Q3-2016.


Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)


₹ crore

FY2016 Q3-20169M- 2016 Q2- 2017 Q3- 2017 9M- 2017
Net interest income 21,224 5,453 15,820 5,253 5,363 15,775
Non-interest income 15,322 4,217 10,214 9,120 3,939 16,488
- Fee income 8,820 2,262 6,607 2,356 2,495 7,007
- Lease and other income1 2,442 513 1,736 352 551 1,408
- Treasury income 4,0602 1,442 1871 6,4122 893 8,073
Operating expense 12,683 3,100 9,278 3,737 3,778 10,888
Operating profit 23,863 6,560 16,756 10,636 5,524 21,375
Provisions 8,067 2,844 4,742 3,495 2,713 8,723
Additional provisions - - - 3,588 - 3,588
Collective contingency and related reserve 3,600 - - - - -
Profit before tax 12,196 3,716 12,014 3,553 2,811 9,064
Less: Tax 2,470 698 2,990 451 369 1,288
Profit after tax 9,726 3,018 9,024 3,102 2,442 7,776
  1. Includes net foreign exchange gains relating to overseas operations of ₹ 143 crore in Q3-2016, nil in Q2-2017, ₹ 82 crore in Q3-2017 and ₹ 941 crore in FY2016
  2. Includes profit of ₹ 3,374 crore on sale of shareholding in ICICI Life and ICICI General in FY2016 and a profit of ₹ 1,243 crore and ₹ 5,682 crore on sale of shareholding in ICICI Life in Q3-2016 and Q2-2017 respectively
  3. Prior period figures have been re-grouped/re-arranged where necessary

Summary Balance Sheet


₹ crore

31-Dec- 15 31-Mar- 1630-Sep- 16 31-Dec- 16
(Audited) (Audited)(Audited) (Audited)
Capital and Liabilities        
Capital 1,163 1,163 1,164 1,164
Employee stock options outstanding 7 7 7 6
Reserves and surplus 88,423 88,566 93,845 96,344
Deposits 407,314 421,426 449,071 465,284
Borrowings (includes subordinated debt)1 177,161 174,807 171,757 159,098
Other liabilities 28,183 34,726 36,096 35,901
Total Capital and Liabilities 702,251 720,695 751,940 757,797
Cash and balances with Reserve Bank of India 22,176 27,106 23,959 26,194
Balances with banks and money at call and short notice 15,524 32,763 28,605 34,973
Investments 163,543 160,412 174,349 168,987
Advances 434,800 435,264 454,256 457,469
Fixed assets 4,778 7,577 7,608 7,551
Other assets 61,430 57,573 63,163 62,623
Total Assets 702,251 720,695 751,940 757,797
  1. Borrowings include preference share capital of ₹ 350 crore.
  2. Prior period figures have been re-grouped/re-arranged where necessary.

All financial and other information in this press release, other than financial and other information for specific subsidiaries where specifically mentioned, is on an unconsolidated basis for ICICI Bank Limited only unless specifically stated to be on a consolidated basis for ICICI Bank Limited and its subsidiaries. Please also refer to the statement of audited unconsolidated, consolidated and segmental results required by Indian regulations that has, along with this release, been filed with the stock exchanges in India where ICICI Bank’s equity shares are listed and with the New York Stock Exchange and the US Securities Exchange Commission, and is available on our website


Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for banking and other financial products and services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology, future levels of impaired loans, the adequacy of our allowance for credit and investment losses, investment income including the ability to successfully monetise our investment in subsidiaries, our rural expansion, our exploration of merger and acquisition opportunities, our ability to integrate mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our ability to manage the increased complexity of the risks we face in our international operations, our growth and expansion in domestic and overseas markets, technological changes, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on us, the equity, bond and loan market conditions and availability of liquidity amongst the investor community in these markets, the nature or level of credit spreads and interest spreads from time to time, including the possibility of increasing credit spreads or interest rates, our ability to roll over our short-term funding sources and our exposure to credit, market and liquidity risks as well as other risks that are detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.


This release does not constitute an offer of securities.


For further press queries please call Sujit Ganguli / Kausik Datta at 91-22-2653 8525 / 91-22-2653 7026 or email


For investor queries please call Anindya Banerjee / Nayan Bhatia at 91-22-2653 7131 / 91- 22-2653 7144 or email


1 crore = 10.0 million


US$ amounts represent convenience translations at US$1= ₹ 67.93

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