From Barter to Bank. Barter systems might have worked in ancient times, but imagine trying to trade a chicken for a haircut today! Banks have revolutionized the way we handle money. They provide a secure and efficient infrastructure for transactions, eliminating the need for cumbersome bartering and making our financial lives significantly easier.

ICICI Bank, a leading player in the Indian financial landscape, goes beyond traditional banking to empower individuals on their financial journey. Their continuous efforts to deliver innovative solutions and prioritizing customer needs have translated into a remarkable 24.74% increase from that of the previous year. It increased from 922.10 rupees in May 2023 to 1,150.25 rupees on 1st of May 2024.

This surge reflects investor confidence in ICICI bank’s long-term growth potential, fueled by their unwavering commitment to excellence. Will it continue to progress in the upcoming years? Come let’s have a deep knowledge about the firm.

Industry overview Of ICICI by iCICI Bank

The Indian banking industry is expected to witness significant growth in the coming years. According to Statista, the Indian Banking market is expected to reach a volume of US $ 338 billion by 2024. Industry experts like S&P Global ratings anticipate loan growth in the sector to be robust, ranging from 14% – 15% in FY25.

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Government initiatives and technological advancements are bringing millions of individuals into the financial system, creating a vast new customer base for banks. The Indian government is actively supporting the banking sector by promoting digital payment infrastructure, encouraging consolidation among PSBs, and fostering financial inclusion initiatives.

Company Overview Of ICICI by ICICI Bank

ICICI( Industrial credit and Investment Corporation of India ) was established in 1994, as a government institution. In 2001, ICICI merged with two of its subsidiaries and transformed into a fully private bank. ICICI bank has its headquarters in Mumbai and a registered office in Vadodara.

ICICI bank has more than 6000 branches in India, and it operates in 17 different countries like US, Qatar, Singapore and China. They do provide services like banking, investment and financial services. ICICI bank has won the “Bank of the year award” from KPMG best banks award for the fourth year in row.

ICICI bank being a trusted bank occupies 29% of market share in Fastag where money is being collected from electronic tolls. They have also increased their market share in UPI P2M transactions to 19.3% as of March 2023.  

Banking products and services offered By ICICI Bank

Savings A/C

ICICI Bank helps people to open savings A/C with no minimum balance requirement. To make the customer feel convenient the bank provides a quick and simple mobile banking facility followed by customer care services. They also provide personalized International debit cards to every savings A/C holder.

Family wealth A/C

They provide a comprehensive suite of products and services related to wealth management according to the needs of the customers.

Home loans

ICICI Bank has a dedicated team of experts to guide the entire process of home loans. They provide home loans to individuals for a maximum tenure of 20 years. At the same time they do provide insurance options to cover the home loans at a competitive premium.

Car loans

ICICI provides car loans to people to finance their purchase of a dream car. They also ensure giving pre approved car loans to their selected customers. The bank’s car loan repayment tenure ranges from 1 – 7 years.

Foreign exchange services

ICICI does provide world class forex solutions. They do give travelers cheques and travelers cards to meet the foreign exchange needs of people.

Demat A/C

ICICI bank provides 24×7 access to transfer securities using the Internet and Interactive Voice Response (IVR). With the company’s bank A/C statement you can follow your dividends, interest, and bonuses.

At the same time you  also can effortlessly access your Demat Account by sending an SMS to query about your Holdings, Transactions, Bill and ISIN details. 

Financials Of ICICI Bank

FY 2023FY2022FY2021FY 2020
Net interest income (in crores)70,52354,24046,50340,170
Net profit (in crores)34,46325,78320,21911,225
ROE17.66%15.47%14.74%9.72%
ROA2.16%1.84%1.42%0.81%

In the Financial year 2023, ICICI bank saw a substantial increase in NII by 30.02% to reach 70,523 crores as compared to 54,240 crores in FY 2023. Analysing three years, encompassing FY 2021 to FY 2023, the company displayed a good compound annual Growth Rate (CAGR) of 12.59% in revenue. 

ICICI bank in FY 23 also increased its net profit margin by 33.66% to 34,463 crores as opposed to 25,783 crores in FY 22. 

This increase in NII and net profit happened because of an increase in retail loans. Retail loans increased from 5,578.17 crore in FY 22 to 6,662.61 crore in FY 23. Increase in digital payment transactions and fastag toll collections also contributed to its increase in revenue.

In FY 23, ICICI bank maintained favorable financial metrics with a Return on Equity (ROE) of 17.66% and a Return on Assets (ROA) of 2.16%

Future Plans Of ICICI Bank

Growth Opportunities

ICICI Bank sees many opportunities to drive risk-calibrated profitable growth across key segments like retail, business banking, SME and corporate banking. Their focus on customer 360, extensive franchise, digital offerings and service delivery initiatives will enable them to deliver holistic solutions and grow market share.

Investments

The bank will continue to make investments in technology, people, distribution and building their brand to support future growth.

Balance Sheet Strength: ICICI Bank remains focused on maintaining a strong balance sheet with prudent provisioning and healthy levels of capital.

Profitability

The bank aims to deliver consistent and predictable returns to shareholders by focusing on principles like “Return of Capital”, “Fair to Customer, Fair to Bank” and “One Bank, One Team, One RoE”.

Digital Initiatives

Leveraging digital and technology across businesses is a key strategy. They will continue enhancing digital platforms and offerings to improve customer experience and enable effective cross-selling.

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Conclusion

ICICI bank’s track record paints a picture of a bank on a positive trajectory. Their focus on digital innovation, customer experience and financial inclusion has fueled impressive growth. Looking at the Indian banking sector which is poised for significant expansion due to rising disposable incomes, government initiatives and technological advancements.

ICICI bank is well positioned to capitalize on this growth, with their commitment to digital transformation and a wide range of products and services catering to various customer segments. What do you think about the upcoming future of ICICI bank? Do let me know in the comments below. 

Written by Pavunkumar V M

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