Money & Banking

ICICI Bank Q1 net profit zooms 78% to ₹4,616 crore

Our Bureau Mumbai | Updated on July 25, 2021

Buoyed by robust net interest income and lower provisions

Private sector lender ICICI Bank reported a 78 per cent jump in its standalone net profit at ₹4,616 crore in the first quarter ended June 30, 2021, led by robust net interest income and lower provisions.

Its net profit was ₹2,599 crore in the first quarter of last fiscal.

However, the bank reported higher gross non-performing asset (NPA) additions at ₹7,231 crore against ₹1,160 crore in the year ago quarter.

About 94 per cent (or ₹6,773 crore) of the gross NPA additions was on account of retail and business banking. This includes additions of ₹961 crore from Kisan Credit Card portfolio and ₹1,130 crore from jewel loan portfolio. The balance 6 per cent (or ₹458 crore) was on account of corporate and SME portfolio.

The total income fell 6.5 per cent to ₹24,379 crore in the first quarter of the fiscal as against ₹26,067 crore a year ago.

Net interest income increased by 18 per cent year-on-year to ₹10,936 crore in the April to June 2021 quarter from ₹9,280 crore in the first quarter last fiscal.

The net interest margin improved to 3.89 per cent in the first quarter this fiscal compared to 3.69 per cent a year ago.

Other income down 35%

Other income, however, fell by 35 per cent yoy to ₹3,996 crore in the first quarter of the fiscal.

Of this, treasury income was ₹290 crore in the first quarter this fiscal compared to ₹3,763 crore a year ago. “The treasury gain in the first quarter of 2020-21 included gains of ₹3,036 crore from sale of shares of subsidiaries,” ICICI Bank said in a statement on Saturday.

The bank’s provisions fell 62 per cent to ₹2,852 crore in the first quarter of the fiscal as against ₹ 7,594 crore a year ago.

“Based on its current assessment of the portfolio, the bank wrote back Covid-19 provisions amounting to ₹1,050 crore made in earlier periods,” ICICI Bank said.

This reflects the confidence the bank has on the book it has built over the years, said Sandeep Batra, Executive Director, ICICI Bank.

NPAs rise

In absolute terms, gross NPAs rose to ₹43,148 crore as at June-end 2021 against ₹40,386 crore as at June-end 2020.

In the reporting quarter, recoveries and upgrades were higher at ₹3,627 crore (₹757 crore in the year ago quarter).

The gross NPA position as a percentage of gross advances improved to 5.15 per cent as at June-end 2021 against 5.46 per cent as at June-end 2020.

The net NPA position as a percentage of net advances position also improved to 1.16 per cent as at June-end 2021 against 1.23 per cent as at June-end 2020.

As of June 30, 2021, the bank had restructured loans amounting to ₹3,891.15 crore under the RBI’s Resolution Framework of which ₹924.74 crore was retail loans and ₹2,956.05 crore was corporate loans.

Batra said the embargo on MasterCard from acquiring new customers will have zero impact on the bank as it is dominantly working with Visa. It will offer new customers credit cards with Visa.

Published on July 24, 2021

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