Money & Banking

ICICI Bank Q2 profit jumps 30% to ₹5,511 crore

Our Bureau Mumbai | Updated on October 23, 2021

Robust growth in net interest income, lower provisions help bank report highest quarterly profit

Private sector lender ICICI Bank reported a near 30 per cent jump in its standalone net profit for the second quarter of the fiscal with robust growth in net interest income and lower provisions.

The bank’s net profit was ₹5,510.95 crore for the second quarter ended September 30, 2021, a growth of 29.6 per cent over ₹4,251.33 crore in the same period last fiscal.

Sandeep Batra, Executive Director, ICICI Bank, said in a media call on Saturday, “This was the highest quarterly net profit ever. The bank’s capital is growing, the economy is growing.

Net interest income up 25%

Net interest income increased by 25 per cent year-on-year to ₹11,690 crore in the second quarter of the fiscal from ₹9,366 crore in the second quarter last fiscal.

The net interest margin increased to 4 per cent in the July to September 2021 quarter from 3.89 per cent in the quarter ended June 30, 2021 and 3.57 per cent in the second quarter last fiscal.

Other income grew by 19.08 per cent on a year-on-year basis to ₹4,797.18 crore in the second quarter of this fiscal.

Provisions (excluding provision for tax) declined by 9 per cent year-on-year to ₹2,714 crore in the second quarter of the fiscal from ₹2,995 crore a year ago.

“The bank continues to hold Covid-19 provisions of ₹6,425 crore as of September 30, 2021, the same level as June 30, 2021,” ICICI Bank said in a statement.

The lender’s asset quality also improved further with net non-performing assets at 0.99 per cent of net customer assets was at the lowest level since December 2014.

Gross NPA was 5.12 per cent of gross advances as on September 30, 2021 as compared to 5.51 per cent as on June 30, 2021 and 5.63 per cent as on September 30, 2020.

Net NPA was 1.06 per cent of net advances at the end of the second quarter compared to 1.09 per cent as on September 30, 2020.

The net NPAs declined by 12 per cent sequentially to ₹8,161 crore at September 30, 2021 from ₹ 9,306 crore at June 30, 2021.

The net addition to gross NPAs declined to ₹96 crore  from ₹ 3,604 crore in the first quarter.

Recoveries and upgrades of NPAs, excluding write-offs and sale, increased to ₹5,482 crore in the second quarter  from ₹3,627 crore in the first quarter of the fiscal.

Restructuring

ICICI Bank restructured 1,543 accounts with an exposure of ₹3,737.66 crore under the Reserve Bank of India’s Resolution Framework 1.0. Of this, ₹61.22 crore slipped into NPAs in the first half of the fiscal and ₹0.76 crore was written off. The lender has exposure of ₹4,158.2 crore to accounts where resolution plan has been implemented under the Resolution Framework 2.0.

Disbursements

Batra said  that with the increase in economic activity, disbursements across all retail products increased sequentially in the second quarter of the fiscal. Mortgage disbursements were close to the level seen in the quarter ended March 31, 2021 while disbursements of personal loans and auto loans were also close to the levels of the fourth quarter 2020-21.

The bank’s total advances increased by 17 per cent year-on-year to ₹7,64,937 crore at September 30, 2021 and total deposits also grew by a similar 17 per cent year on year to ₹9,77,449 crore as of September 30, 2021.

Published on October 23, 2021

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