ICICI Bank expects corporate loans to grow 12% in FY23

State-owned expects advances to grow by 10 -- 12 per cent in the current fiscal year with corporate loans yet to pick up, top official said in an analyst call.

The bank's year-to-date YTD loan growth stood at about 5 per cent, mainly driven by Retail sector advances, Agricultural and MSME loans RAM Advances growth guidance will be in the range of 10 to 12 per cent for the full year. We had YTD growth of about 5 per cent up to June, but that is mostly due to good RAM growth. A K Das,Das, Managing Director Chief Executive Officer MD&CEO told analysts in the post Q 1 FY 23 earnings conference call that there was a movement in the corporate book from this quarter onwards.

The gross advances of the bank in global and domestic sectors stood at Rs 4,77, 746 crore at the end of June 2022.

In the first quarter of the current fiscal year, the lender lost 22 per cent of net profit at Rs 561 crore as opposed to Rs 720 crore in the year-ago quarter.

The bank expects Net Interest Margin NIM to be 2.90 per cent domestically and global NIM of 2.75 per cent to reach the loan growth target for 2022 -- the bank believes that it won't be hard to achieve the loan growth target for 2022-23.

In Q1 of FY23, the bank's domestic and global NIMs were 2.88 per cent and 2.55 per cent, respectively.

Das said there was a lot of repricing in the loan book in both sides and it would be good if the bank could keep its guidance on its NIMs. In terms of asset quality, the bank said it has set a target of Rs 2,500 crore reduction in bad loans every quarter.

The lender has lined-up various OTS One Time Settlement programmes, which will result in 1,700 crore coming from upgradation and cash recoveries, and the rest will be covered by the loan's One Time Settlement programmes, said M Karthikeyan, Executive Director.

We are certain that around 3,000 crore will come through resolutions through NCLT this year, that's what our guidance is, he said.

The bank's gross non-performing assets NPAs increased to 9.30 per cent of gross advances, resulting in Rs 44,415 crore at the end of June 2022. It was at 13.51 per cent Rs 56,042 crore at the end of June 2021.

Net NPAs fell to 2.21 per cent of Rs 9,775 crore against 3.35 per cent of Rs 12,424 crore. Slippages in the quarter were lower at Rs 2,465 crore as compared to a year ago's Rs 3,528 crore.

For the full year, expects slippages not to cross Rs 8,000 crore. There were cash recoveries of 1,219 crore, upgradation of Rs 465 crore and a write-off of Rs 2,340 crore that resulted in a total reduction of Rs 4,024 crore in the June quarter.