Q1 Performance: ICICI Bank net profit surges 78% to Rs 4,616 crore

The slope claims to person made higher than required provisioning owed to alteration successful argumentation for non-performing advances.

Private lender ICICI Bank connected Saturday reported a 78% year-on-year (y-o-y) leap successful its nett net to Rs 4,616 crore during the June 4th (Q1FY22). The slope was capable to study a beardown bottomline chiefly connected relationship of robust nett involvement income (NII) and little provisioning. NII of the lender roseate 18% y-o-y and 5% quarter-on-quarter (q-o-q) to Rs 10,936 crore. However, provisions fell sharply to Rs 2,852 crore successful the reporting quarter, down 62% y-o-y, compared to Rs 7,594 crore successful Q1FY21.

Sandeep Batra, enforcement director, ICICI Bank, said, “The retail disbursements moderated successful April and May owed to the containment measures successful spot crossed assorted parts of the country.” With the gradual easing of restrictions, disbursements picked up successful June and July, helium added.

The nett involvement margins (NIM) of the slope accrued 20 ground points (bps) y-o-y and 5 bps sequentially to 3.89%. Although the absorption did not gave immoderate circumstantial guidance connected margins, the lender expects NIMs to support the aforesaid level successful the coming quarters. The plus prime of the lender worsened during the June quarter. Gross non-performing assets (NPAs) ratio of the lender accrued 19 ground points (bps) to 5.16%, compared to gross NPAs of 4.96% successful the erstwhile quarter.

Similarly, nett NPAs ratio accrued 2 bps to 1.16% from 1.14% successful the March quarter. The gross NPA additions were Rs 7,231 crore successful Q1FY22. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,627 crore during the June quarter.

As of June 30, the slope had restructured loans worthy Rs 3,891 crore nether the Reserve Bank of India’s 1 clip restructuring scheme. This included retail loans worthy Rs 925 crore and firm loans worthy Rs 2,956 crore. The slope held provisions worthy Rs 632.35 crore against these restructured loans.

The slope claims to person made higher than required provisioning owed to alteration successful argumentation for non-performing advances. “The alteration successful argumentation resulted successful higher proviso connected non-performing advances amounting to Rs 1,127 crore for aligning provisions connected outstanding loans to the revised policy,” it said. Based connected existent appraisal of the portfolio, the slope besides wrote backmost Covid-19 provisions amounting to Rs 1,050 crore made successful earlier periods.

The non-interest income (excluding treasury income) accrued by 56% y-o-y to Rs 3,706 crore. The non-interest income included interest income of Rs 3,219 crore, which grew 53% y-o-y.

Total advances accrued by 17% y-o-y to Rs 7.38 lakh crore. The retail indebtedness portfolio grew by 20% y-o-y and comprised 61.4% of the full indebtedness portfolio. 4.0% of full loans astatine June 30, 2021. The maturation successful the home firm portfolio was astir 11% y-o-y driven by disbursements to higher rated corporates and nationalist assemblage undertakings crossed assorted sectors.

Total deposits accrued by 16% y-o-y to Rs 9.26 lakh crore. Average existent relationship deposits accrued by 32% y-o-y and mean savings relationship deposits accrued by 22% y-o-y successful Q1FY22. Similarly, full word deposits accrued by 9% to Rs 5.01 lakh crore during the June quarter.

The bank’s superior adequacy ratio remained 19.27%, compared to the minimum regulatory requirements of 11.08%.