ICICI Bank’s Q3 profit increases by 25%

Batra said the bank made collections worth Rs 4,200 crore in the third quarter. “Of these Rs 4,200 crore, most of the recoveries have been on the retail side. We had about Rs 3,700 crore in recoveries from retail and about Rs 482 crore from corporate and SME book,” he said.

Private sector lender ICICI Bank on Saturday reported a 25.4% year-on-year (year-on-year) rise in standalone net profit to Rs 6,193.81 crore in the FY22 December quarter thanks to a 23.4% year-on-year increase in net interest income (NII) to Rs 12,236 crores. Net interest margin (NIM) – a key measure of profitability – came in at 3.96%, down four basis points (bps) from 4% in the prior quarter.

Total advances from ICICI Bank increased by 16% year-on-year to Rs 8.14 lakh crore. The retail loan portfolio increased by 19% year-on-year and constituted 61.3% of the total loan portfolio as of December 31, 2021. The domestic wholesale banking portfolio increased by 13% year-on-year. Total deposits increased by 16% year-on-year to Rs 10.17 lakh crore and the bank’s average Current Account Savings Account (CASA) ratio stood at 44.9% from 41 .8% a year ago. Time deposits rose by 12% to Rs 5.37 lakh crore.

The bank’s management said it did not see the third wave of the ongoing pandemic as a threat. Sandeep Batra, the bank’s chief executive, said as things stand, the third wave may have created local disruption. “We do not, at this stage, expect any significant economic disruption to the portfolio we have. Anyway, from our perspective, we have a Covid provision which is around Rs 6,400 crore, which we haven’t published in the quarter. We’ll just wait for the third wave to probably subside,” Batra said.

Provisions fell 27% year-on-year to Rs 2,007 crore. The total fund-based outstanding of all borrower accounts being resolved under various regulatory regimes stood at Rs 9,684 crore, or 1.2% of total advances as of December 31, 2021, a similar level compared to September 30, 2021. The bank held provisions amounting to Rs 2,436 crore against these borrowers in resolution, as of December 31, 2021.

Additions to gross non-performing assets (NPA) fell to Rs 4,018 crore in the December quarter from Rs 5,578 crore in the September quarter. Retail slippages were Rs 3,853 crore and corporate and small and medium enterprise (SME) slips stood at Rs 165 crore. ICICI Bank’s gross NPA ratio at the end of December stood at 4.13%, 69 basis points lower than 4.82% at the end of September, while the net NPA ratio decreased by 14 basis points in 0.85% sequential.

Batra said the bank made collections worth Rs 4,200 crore in the third quarter. “Of these Rs 4,200 crore, most of the recoveries have been on the retail side. We had about Rs 3,700 crore in recoveries from retail and about Rs 482 crore from corporate and SME book,” he said.

The bank’s total capital adequacy as of December 31, 2021 was 19.79% and Tier 1 capital adequacy was 18.81%, compared to minimum regulatory requirements of 11.7% and 9.7 %, respectively. ICICI Bank shares on BSE closed at Rs 804.60 on Friday, down 0.66% from their previous close.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest Biz news and updates.

Comments are closed.