ICICI Bank, PhonePe partner to offer instant UPI credit

ICICI Bank has teamed up with PhonePe to offer instant credit on UPI to its pre-approved customers through the PhonePe app. The bank says ICICI Bank’s pre-approved customers can activate a short-term credit line instantly through the PhonePe app. The credit line on UPI can go up to ₹2 lakh, with a repayment period of 45 days.

“Credit Line on UPI is yet another innovative product offering that will unlock and revolutionise access and use of credit in the country,” says Deep Agrawal, head of Payments at PhonePe.

Amid this announcement, ICICI Bank shares surged 1.1% to reach an intra-day high of ₹1,247.60 apiece on the BSE during early trading hours today. At the time of reporting, ICICI Bank shares were trading 0.30% higher at ₹1,236.75 apiece on the BSE, with a market cap of ₹8,71,467.08 crore. The stock opened lower at ₹1,230.00, in contrast with the strong broader market, against the previous close price of ₹1,233.10. Over the past month, the stock has risen 0.12%, gained 13.73% in the last six months, and surged 23.72% year-to-date (YTD). On September 20, ICICI Bank shares surged as much as 10.4%, reaching a 52-week high of ₹1,361.35 on the BSE. The bank recorded a 52-week low of ₹898.85 on the BSE on October 26, 2023.

ICICI Bank reported a net profit of ₹11,059.1 crore for the first quarter of the fiscal year 2025, marking a 14.6% increase from ₹9,648.2 crore reported in the same period last year. Additionally, the bank's net interest income reached ₹19,552.9 crore, reflecting a year-on-year growth of 7.3% and exceeding expectations of ₹19,515 crore.

Additionally, the bank's net interest income reached ₹19,552.9 crore, reflecting a year-on-year (YoY) growth of 7.3%. The lender's gross non-performing assets (NPA) were recorded at 2.15%. Meanwhile, the net non-performing assets (NNPA) rose slightly to 0.43%, up from 0.42% in the previous year.

Recently it was reported that PhonePe, owned by Walmart, processed 7.23 billion UPI transactions totaling ₹10.33 lakh crore in August. This accounted for a significant market share of 48.4% by volume and 50.1% by value, as reported by the National Payments Corporation of India (NPCI).

In August, UPI saw a total of 14.96 billion transactions valued at ₹20,60,735.57 crore. Among these, PhonePe accounted for 7.23 billion transactions, totaling ₹10,33,264.34 crore, which corresponds to a market share of 48.36% by volume and 50.14% by value. PhonePe's market share in July was 48.3% by volume and 49.8% by transaction value.