Sandeep Batra, ICICI Bank: Value of transactions by non-ICICI Bank customers on iMobile Pay grew by 35% Q-o-Q

Mumbai: ICICI Bank, a leading private lender reported a robust profit after tax of Rs 6,905 crore in Q1FY23 with a 49.6% growth over the year-ago period. This was at the back of operating within the strategic framework, strengthening the franchise, servicing capabilities and expanding the technology and digital offerings.

Talking to media after the announcement of Q1 results, Sandeep Batra, Executive Director, ICICI Bank said, “We aim to grow the core operating profit in a risk calibrated manner through a 360-degree customer centric approach focusing on ecosystems and macro markets.”

Digital Initiatives:

ICICI Bank’s mobile banking app, iMobile Pay is a super app that offers payment and banking services to customers of any bank. There have been 73 lakh activations of iMobile Pay from non-ICICI Bank account holders as of June 30 2022. The value of transactions by non-ICICI Bank account holders in Q1-2023 was 35% more than the value of transactions in Q4-2022.

The value of credit card spends grew by 13% sequentially and two times YoY driven by improvement in discretionary spending, higher activation rate through digital on boarding of customers, including Amazon Pay credit cards, and diversification through commercial cards. The Bank has issued more than 3.2 million Amazon Pay credit cards since its launch.

InstaBIZ and other digital platforms have helped the business banking and SME franchise expand. The value of financial transactions has grown by 57% YoY on InstaBIZ this quarter. The growth in spends through InstaBIZ app has almost soared 2.8 times in Q1-2023 and the YoY growth in active merchants is 69%. The Bank has created more than 20 industry specific STACKs which provide bespoke and purpose-based digital solutions to corporate clients and their ecosystems. The volume of payment and collection transactions through API based solutions in Q1-2023 was 3.7 times the volume of transactions in Q1-2022.

BizPay360 a bulk payment solution offered by the Bank has acquired more than 35,000 new registrations in Q1-2023 and the throughput value has grown by 12% in Q1-2023 from previous quarter.

Supply chain solutions like ICICI Bank Corp Connect and DigitalLite with algorithm driven credit facility have grown in the book value by 2.6 times YoY. OneSCF an integrated supply chain finance solution was recently launched by the Bank which allows corporate customers to efficiently manage working capital requirements.

The Bank maintained the market leader position in electronic toll collections through FASTag. The Bank had a market share of about 32% by value in electronic toll collections through FASTag in Q1-2023, with a 52.8% YoY growth in collections.

Loans and Deposits:

ICICI Bank’s total advances registered a growth of 21% YoY to Rs. 895,625 crore as on June 30, 2022. Retail loans grew by 24.4 % YoY, which formed 53.1 % of bank’s loan book.

The retail loan portfolio, excluding rural loans, grew by 24% YoY at June 30, 2022. Including non-fund outstanding, the retail loan portfolio was 44.0% of the total portfolio at June 30, 2022. The rural portfolio grew by 8% YoY. The business banking portfolio grew by 45% YoY. The SME business, comprising borrowers with a turnover of less than Rs 250 crore grew by 32% YoY. Growth in the domestic wholesale banking portfolio was 14% YoY at June 30, 2022

As on June 2022, ICICI Bank’s total deposits grew 13% YoY to Rs 1,050,349 crore. Average current account savings account deposits was 45.8 % YoY in April-June.

Total term deposits increased by 11.4% YoY to Rs 558,235 crore at June 30, 2022.

“Looking ahead, we see many opportunities to grow the core operating profit in a risk calibrated manner. In order to leverage these opportunities, we have reorganized our business teams said,” Sandeep Batra. “Cities with large concentrated market opportunities have been organised under ‘city business heads’ covering the full spectrum of ecosystems. We have also focused on strengthening the workforce by skilling and providing cross-functional opportunities. We will continue to make investments in technology, people, distribution and building our brand.”

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