Private lender ICICI Bank on Saturday reported a 78% year-on-year (y-o-y) jump in its net profit to Rs 4,616 crore in the course of the June quarter (Q1FY22). The bank was in a position to report a sturdy bottomline mostly on account of robust net interest revenue (NII) and reduce provisioning. NII of the lender rose 18% y-o-y and 5% quarter-on-quarter (q-o-q) to Rs 10,936 crore. However, provisions fell sharply to Rs 2,852 crore in the reporting quarter, down 62% y-o-y, compared to Rs 7,594 crore in Q1FY21.
Sandeep Batra, executive director, ICICI Bank, mentioned, “The retail disbursements moderated in April and May due to the containment measures in place across various parts of the country.” With the gradual easing of restrictions, disbursements picked up in June and July, he added.
The net interest margins (NIM) of the bank elevated 20 basis points (bps) y-o-y and 5 bps sequentially to 3.89%. Although the management did not gave any particular guidance on margins, the lender expects NIMs to sustain the identical level in the coming quarters. The asset excellent of the lender worsened in the course of the June quarter. Gross non-performing assets (NPAs) ratio of the lender elevated 19 basis points (bps) to 5.16%, compared to gross NPAs of 4.96% in the earlier quarter.
Similarly, net NPAs ratio elevated 2 bps to 1.16% from 1.14% in the March quarter. The gross NPA additions have been Rs 7,231 crore in Q1FY22. Recoveries and upgrades of NPAs, excluding create-offs and sale, have been Rs 3,627 crore in the course of the June quarter.
As of June 30, the bank had restructured loans worth Rs 3,891 crore beneath the Reserve Bank of India’s one time restructuring scheme. This integrated retail loans worth Rs 925 crore and corporate loans worth Rs 2,956 crore. The bank held provisions worth Rs 632.35 crore against these restructured loans.
The bank claims to have made greater than expected provisioning due to alter in policy for non-performing advances. “The change in policy resulted in higher provision on non-performing advances amounting to Rs 1,127 crore for aligning provisions on outstanding loans to the revised policy,” it mentioned. Based on present assessment of the portfolio, the bank also wrote back Covid-19 provisions amounting to Rs 1,050 crore made in earlier periods.
The non-interest revenue (excluding treasury revenue) elevated by 56% y-o-y to Rs 3,706 crore. The non-interest revenue integrated charge revenue of Rs 3,219 crore, which grew 53% y-o-y.
Total advances elevated by 17% y-o-y to Rs 7.38 lakh crore. The retail loan portfolio grew by 20% y-o-y and comprised 61.4% of the total loan portfolio. 4.% of total loans at June 30, 2021. The development in the domestic corporate portfolio was about 11% y-o-y driven by disbursements to greater rated corporates and public sector undertakings across numerous sectors.
Total deposits elevated by 16% y-o-y to Rs 9.26 lakh crore. Average present account deposits elevated by 32% y-o-y and typical savings account deposits elevated by 22% y-o-y in Q1FY22. Similarly, total term deposits elevated by 9% to Rs 5.01 lakh crore in the course of the June quarter.
The bank’s capital adequacy ratio remained 19.27%, compared to the minimum regulatory needs of 11.08%.