ICICI Bank reported that its net profit jumped 50 per cent in to ₹6,905 crore on back of 60 per cent decline in provisions for the quarter at ₹1,144 crore.

Credit growth also increased 21 per cent, much higher than the industry average of about 10-12 per cent.

Sandeep Batra, Executive Director, in the earnings conference said the provisions included contingency provisions of ₹1,050 crore, which totalled to ₹8,500 crore as of June 30. The bank is holding provisions of ₹2,290 crore against ₹7,376 crore of loans that are under resolution, he added. Provision coverage ratio of the bank stood at 79.6 per cent as of June 30.

ICICI Bank’s domestic advances grew 22 per cent, led by 24 per cent growth in retail loans — which comprised 53 per cent of total loans on June-end.

Business banking loans saw a growth of 45 per cent, rural loans of 8 per cent and SME loans of 32 per cent. Total advances were up 21 per cent at ₹8.95-lakh crore.

Credit card spends

The lender said that the value of credit card spends doubled from a year ago, and grew 13 per cent sequentially, driven by improvement in discretionary spending, higher activation rate through digital on-boarding, and diversification through commercial cards.

The cards portfolio was at ₹28,010 crore on June-end, up 63 per cent year-on-year. NII rose 21 per cent to ₹13,210 crore, whereas NIM was slightly better at 4.01 per cent against 4 per cent in the previous quarter and 3.89 per cent a year ago.

The private bank saw an improvement in its asset quality, with the gross NPA ratio declining to 3.41 per cent from 3.60 per cent a quarter ago and 5.15 per cent a year ago. The net NPA ratio too was better at 0.70 per cent against 0.76 per cent in the previous quarter and 1.16 per cent in the previous year.

Gross additions to bad loans for the quarter were at ₹5,825 crore, which were largely off-set by recoveries and upgrades loans of ₹5,443 crore. The bank also wrote-off loans worth ₹1,126 crore during the quarter, and sold loans of about ₹14 crore on a cash basis, Batra said.

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