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Private sector lender ICICI Bank reported a robust 36.22 per cent increase in its standalone net profit to Rs 2,599.15 crore for the first quarter of the fiscal, buoyed by stake sales in its insurance arms. The bank’s net profit was Rs 1,908.03 crore a year ago.
The bank’s total income rose by 21.77 per cent to Rs 26,066.95 crore in the quarter ended June 30, 2020 versus Rs 21,405.50 crore a year ago.
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Net interest income increased by 20 per cent to Rs 9,280 crore from Rs 7,737 crore during the period under review.
The net interest margin was 3.69 per cent in the first quarter of 2020-21 compared to 3.87 per cent in the quarter ended March 31, 2020 and 3.61 per cent in the first quarter of 2019-20.
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“This reflected higher liquidity with the bank due to strong deposit inflows and limited credit demand due to the lockdown,” ICICI Bank said in a statement on Saturday.
Other income shot up by 79.3 per cent to Rs 6,142.6 crore in the April to June 2020 quarter, as against Rs 3,425.44 crore a year ago.
Treasury income was Rs 3,763 crore, compared to Rs 179 crore a year ago.
Stake sale in insurance arms
“During the first quarter this fiscal, the bank sold four per cent shareholding in ICICI Lombard General Insurance and 1.5 per cent shareholding in ICICI Prudential Life Insurance. The aggregate gains from these transactions were Rs 3,036 crore, further strengthening the balance sheet,” the lender said.
Provisions nearly doubled to Rs 7,593.95 crore in the first quarter of the fiscal from Rs 3,495.73 crore a year ago.
The lender made additional Covid-19 related provisions of Rs 5,550 crore in the first quarter “with the objective of completely cushioning the balance sheet from the impact of Covid-19”.
Covid-19 related provisions
It held Covid-19 related provisions amounting to Rs 8,275 crore as of June 30, 2020.
“This additional provision held by the bank is more than the requirement, as per the RBI guideline dated April 17, 2020,” it said.
Asset quality was stable. During the quarter, the gross additions to NPAs were ₹ 1,160 crore.
As on June 30, 2020, gross NPAs stood at 5.99 per cent of gross advances compared to 7.21 per cent a year ago and net NPAs were 1.34 per cent of net advances as against 1.98 per cent on June 30, 2019.
The year-on-year growth in domestic advances was 10 per cent at June 30, 2020. Total deposits increased by 21 per cent year-on-year to Rs 8,01,622 crore at June 30, 2020.
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