ICICI Bank reported a 59.4 per cent jump in its standalone net profit to ₹7,018.71 crore in the fourth quarter of fiscal 2021-22, led by a sharp growth in net interest income and lower provisions. This is its highest ever quarterly net profit.
The private sector lender had a net profit of Rs 4,402.61 crore in the fourth quarter of 2020-21.
For the full fiscal 2021-22, net profit surged by 44.1 per cent to Rs 23,339.49 crore as compared to Rs 16,192.68 crore in 2020-21.
For the quarter ended March 31, 2022, net interest income (NII) increased by 21 per cent year-on-year to Rs 12,605 crore, from Rs 10,431 crore a year ago.
The net interest margin was higher at 4 per cent in the fourth quarter of 2021-22 compared to 3.84 per cent in the fourth quarter of 2020-21, and 3.96 per cent in the quarter ended December 31, 2021.
Non-interest income, excluding treasury income, increased by 11 per cent to ₹ 4,608 crore , as against Rs 4,137 crore in the quarter under review.
The bank reported a treasury gain of Rs 129 crore in the fourth quarter of 2021-22, compared to a loss of Rs 25 crore a year ago.
Provisions (excluding provision for tax) declined by 63 per cent to Rs 1,069 crore in the January to March 2022 quarter, from Rs 2,883 crore a year ago.
“Provisions for the fourth quarter of 2021-22 included contingency provision of Rs 1,025 crore made on a prudent basis,” ICICI Bank said in a statement on Saturday.
Asset quality improves
Gross non-performing assets amounted to Rs 33,919.52 crore as of March 31, 2022 or 3.76 per cent of gross advances. It was 5.33 per cent as on March 31, 2021.
Net NPAs also declined to 0.81 per cent of net advances as on March 31, 2022, compared to 1.24 per cent a year ago.
The gross NPA additions were Rs 4,204 crore in the fourth quarter compared to Rs 4,018 crore in the third quarter of last fiscal. The net deletions from gross NPAs, excluding write-offs and sale, were Rs 489 crore in the fourth quarter compared to Rs 191 crore in the third quarter.
Recoveries and upgrades of NPAs, excluding write-offs and sale, increased to Rs 4,693 crore in the quarter. The gross NPAs written-off were Rs 2,644 crore. The provision coverage ratio on NPAs was 79.2 per cent as of March 31, 2022.
“We are focussed on growing organically,” said Sandeep Batra, Executive Director, ICICI Bank, adding that there might be some opportunities in portfolio buyouts that it would continue to assess.
Total advances grew 17 per cent year-on-year to Rs 8,59,020 crores on March 31, 2022. Its total deposits grew by 14 per cent to Rs 10,64,572 crore in the same period.
The board has approved fund raising up to Rs 25,000 crore in the domestic markets by way of debt securities, including non-convertible debentures, private placement and issuances of bonds, notes, and offshore certificates of deposits in overseas markets up to $150 crore in single or multiple tranches for a period of one year, from the date of passing of resolution by the board.
Batra said this is an enabling provision by the board
The lender also announced that Vishakha Mulye, Executive Director, has resigned with effect from May 31, 2022, consequent to her decision to pursue career opportunities outside the ICICI Group.
Anup Bagchi, who was leading the retail business, would take over the corporate portfolio. Rakesh Jha, the Group Chief Financial Officer, would lead the retail business.
Jha has been appointed a Wholetime Director (designated as Executive Director) subject to regulatory approvals, for a period of five years effective from May 1, 2022, or the date of approval of his appointment by RBI, whichever is later. Jha would cease to be Group CFO and Key Managerial Personnel effective May 1, 2022.
Dividend payout
The board also recommended a dividend of Rs 5 per equity share subject to requisite approvals. The dividend will be paid on or after the same is approved by shareholders at the ensuing Annual General Meeting, it said.
The total capital adequacy ratio was 19.16 per cent and Tier-1 capital adequacy ratio was 18.35 per cent on a standalone basis as of March 31, 2022.