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Private sector lender ICICI Bank reported a 19.1 per cent increase in its standalone net profit in the third quarter of the fiscal at ₹4,939.59 crore. The bank had a net profit of ₹4,146.46 crore in the same period last fiscal.
For the quarter ended December 31, ICICI Bank’s net interest income increased by 16 per cent to ₹9,912 crore from ₹8,545 crore in the third quarter last fiscal.
The net interest margin was 3.67 per cent in the October to December compared to 3.57 per cent in the quarter ended September 30 and 3.77 per cent in the third quarter last fiscal.
Non-interest income, excluding treasury income, declined to ₹3,921 crore in the third quarter this fiscal compared to ₹4,043 crore a year ago.
Provisions increased by 31.6 per cent to ₹2,741.72 crore in the third quarter this fiscal from ₹2,083.2 crore a year ago.
Contingency provision
“During the third quarter of 2020-21, the bank made contingency provision amounting to ₹3,012 crore for borrower accounts not classified as non-performing pursuant to the interim order of the Supreme Court. The Bank utilised ₹1,800 crore of Covid-19 related provisions made in the earlier periods,” ICICI Bank said in a statement on Saturday.
It further said that it has changed its provisioning policy on non-performing assets to make it more conservative in the third quarter.
“The contingency provision made on a prudent basis for loans overdue for more than 90 days at December 31, 2020 but not classified as non-performing pursuant to the Supreme Court’s interim order, also reflects the revised policy,” it said, adding that the change in policy resulted in higher provision on advances amounting to ₹2,096 crore during the third quarter for aligning provisions on the outstanding loans to the revised policy.
During the quarter, the gross additions to NPAs were ₹471 crore.
As on December 31, gross NPAs amounted to 4.72 per cent of gross advances as against 6.39 per cent a year ago. Net NPAs stood at 0.69 per cent at the end of the third quarter this fiscal versus 1.6 per cent a year ago.
Loans amounting to ₹8,280 crore, compared to ₹1,410 crore at September 30, 2020, were not classified as non-performing at December 31, pursuant to the Supreme Court’s interim order, ICICI Bank said.
On a proforma basis, the net NPA ratio was 1.26 per cent at December 31 compared to 1.12 per cent at September 30.
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