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Private sector lender ICICI Bank registered a 26 per cent jump in its net profit in the fourth quarter of the fiscal 2019-20 to ₹1,221.36 crore as against ₹969.06 crore a year ago.
The bank’s total income grew by 12.1 per cent to ₹23,443.66 crore in the quarter ended March 30, 2020 from ₹20,913.82 crore a year ago. The net interest income grew by 17 per cent to ₹8,927 crore in the fourth quarter, from ₹7,620 crore a year ago.
“Excluding the interest on income tax refund, NII grew by 24 per cent year on year in the fourth quarter of 2019-20,” ICICI Bank said in a statement on Saturday.
Net interest margin up
The net interest margin was the highest ever at 3.87 per cent in the fourth quarter, compared to 3.77 per cent in the quarter ended December 31, 2019, and 3.72 per cent in the fourth quarter in 2018-19.
Other income grew by 17.5 per cent to ₹4,254.98 crore in the quarter under review.
Sandeep Batra, President, ICICI Bank told reporters in a media call that excluding covid provisions, the profit after tax for the fourth quarter would have been ₹3,260 crore.
For 2019-20, the bank’s net profit surged to ₹7,931 crore crore from ₹3,363 crore in 2018-19. “Excluding the impact of change in tax rate during the year, and the Covid-19 related provisions, the profit after tax would have been ₹11,360 crore for 2019-20,” Batra said.
In the fourth quarter, the bank made coronavirus-related provisions of ₹2,725 crore. The total provisions in the fourth quarter stood at ₹5,967.4 crore as against ₹5,451.41 crore a year ago.
Recoveries and upgrades, excluding write-offs, from non-performing loans were ₹1,883 crore in the quarter under review.
NPA ratio falls
Gross non-performing assets (NPAs) stood at Rs 41,409.16 crore or 6.04 per cent of gross advances as on March 31, 2020 as against 7.38 per cent a year ago. Net NPAs was 1.54 per cent of net advances as on March 31, 2020 as against 2.29 per cent a year ago. Batra said the net NPA ratio was the lowest in the last 19 quarters.
Total deposits increased by 18 per cent year-on-year to ₹7,70,969 crore at March 31, 2020, and total advances increased by 10 per cent year-on-year to Rs 6,45,290 crore in the same period.
Board meet
The board of directors of the bank at its meeting also approved fund raising up to ₹25,000 crore by way of issuances of debt securities including by way of Non-Convertible Debentures in domestic markets by way of private placement and issuances of bonds/notes/offshore Certificate of Deposits in overseas markets up to $300 crore in single/multiple tranches for a period of one year.
It also approved shifting of registered office of the bank from Gujarat to Maharashtra.
The board also approved re-appointment of Girish Chandra Chaturvedi as an Independent Director of the Bank for a period of three years effective from July 1, 2021 as well as Non-Executive (part-time) Chairman for the same period, subject to approval of members and RBI.
It also approved re-appointment of Vishakha Mulye as whole time Director (designated as Executive Director) of the Bank for a period of five years effective from January 19, 2021 as well as extension of tenure of G Srinivas as Chief Risk Officer of the bank by another three years with effect from August 1, 2020 till July 31, 2023.
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