ICICI Bank reported a 24% rise in net profit for Q3 2024, beating estimates. What was the Net Interest Margin (NIM) during this period?

The correct answer is Option 3 (0.0443).

Key Points

• ICICI Bank reported a Net Interest Margin (NIM) of 0.0443 during Q3 2024, reflecting strong growth in profitability.
• Net Interest Margin (NIM) is a key measure of a bank's profitability, calculated as the difference between interest income generated and interest paid, relative to its interest-earning assets.
• ICICI Bank's NIM of 4.43% (or 0.0443 in decimal form) was a significant contributor to its 24% rise in net profit for the quarter.
• The higher-than-expected NIM indicates efficient management of the bank's interest income and cost of funds.
• ICICI Bank outperformed market estimates for Q3 2024, showcasing robust operational performance and strong credit growth.

Additional Information

• Net Interest Margin (NIM):
  • NIM is calculated as (Interest Income - Interest Expense) / Average Earning Assets.
  • A high NIM indicates better profitability and efficient asset utilization for a bank.
  • Factors affecting NIM include interest rate changes, credit demand, and cost of funds.
• ICICI Bank Overview:
  • ICICI Bank is one of India's largest private sector banks, offering a wide range of banking and financial products.
  • The bank consistently demonstrates strong financial performance, driven by its retail and corporate banking operations.
• Bank Profitability Metrics:
  • Other key profitability metrics include Return on Assets (RoA), Return on Equity (RoE), and Cost-to-Income Ratio.
  • These metrics are used to assess a bank's financial health and operational efficiency.
• Quarterly Financial Reports:
  • Quarterly financial reports provide insights into a bank's performance, including revenue, profit, loan growth, and asset quality.
  • ICICI Bank's strong Q3 2024 performance reflects effective credit risk management and growth in core banking operations.