ICICI Bank disrupting banking for better

February 22, 2023

ICICI Bank had reported its worst asset quality in a decade amid dwindling return ratios. The gross NPA ratio was at a record 8.8% for FY18, having more than doubled from 3.3% in just three years, while return on assets (RoA) had halved to 0.9% from 1.9% during the period.

Clearly, a result of excessive emphasis on the corporate book by the previous management. For the new management under Sandeep Bakhshi, who became MD and CEO in October of that year, getting the bank back in good shape was an uphill task. But a strategic shift toward the retail portfolio, away from the wholesale book, while taking advantage of new technologies to reach out to consumers, has led the bank to not only turn around its operations but also to emerge as the winner of the ET Awards for Corporate Excellence for 2022 in the Company of the Year category.

“Team ICICI Bank thanks The Economic Times and its esteemed jury for this award. It is a testament to the hard work of more than one lakh employees who have made the bank a trusted brand in the industry. This recognition enhances our responsibility to work towards meeting the aspirations of all our stakeholders,” Bakhshi said.

The concerted efforts by the country’s second-largest private sector bank based on advances have resulted in improved financial performance over the years. In FY22, the gross non-performing asset (NPA) ratio was at a seven-year low of 3.6% while RoA crossed 2% for the first time in seven years. The bank reported advances of ₹8.6 lakh crore at the end of March 2022, up 13.8% annually since March 2018.