Money & Banking

ICICI Bank Q2 net profit rises over 6-fold to Rs 4,251 crore

Surabhi New Delhi | Updated on October 31, 2020 Published on October 31, 2020

ICICI Bank has tied up with companies to provide single-point access to a host of services   -  REUTERS

Private sector lender ICICI Bank reported a six fold jump in its net profit at Rs 4,251.33 crore for the second quarter of the fiscal as against Rs 654.96 crore a year ago.

Net interest income increased by 16 per cent year-on-year to Rs 9,366 crore in the quarter ended September 30, 2020 from Rs 8,057 crore in the second quarter last fiscal.

Net interest margin

The net interest margin was 3.57 per cent in the second quarter this fiscal compared to 3.69 per cent in the quarter ended June 30, 2020 and 3.64 per cent in the second quarter this fiscal.

However, other income was down at Rs 4,028.31 crore in the July to September 2020 quarter from Rs 4,194.22 crore a year ago.

Provisions amounted to Rs 2,995.27 crore in the second quarter this fiscal versus Rs 2,506.87 crore in the same period last fiscal.

“This includes provision of Rs 497 crore made on a prudent basis on loans aggregating to Rs 1,410 crore that were not classified as non-performing pursuant to the Supreme Court’s interim order dated September 3, 2020 directing that accounts which were not classified as non-performing till August 31, 2020, should not be classified as non-performing until further orders,” ICICI Bank said in a statement on Saturday.

Sandeep Batra President, ICICI Bank said that as at September 30, 2020, the bank held Covid-19 related provision of Rs 8,772 crore.

GNPA drops

Asset quality also improved. Gross non-performing assets declined to 5.63 per cent of gross advances as on September 30, 2020 from 6.9 per cent a year ago while net NPAs were also lower at 1.09 per cent of net advances at the end of the second quarter this fiscal versus 1.74 per cent on September 30, 2019.

Its total capital adequacy ratio was at 19.33 per cent and Tier-1 capital adequacy ratio stood at 17.89 per cent on a standalone basis at September 30, 2020 (including profits for the six months ended September 30, 2020).

 

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Published on October 31, 2020
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