ICICI Bank Q3 profit rises 25%

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Batra said the bank made recoveries worth Rs 4,200 crore in Q3. “Amongst this Rs 4,200 crore, most of the recoveries have been from the retail side. We had about Rs 3,700 crore of recoveries from retail and about Rs 482 crore from the corporate and SME book,” he said.

Private-sector lender ICICI Bank on Saturday reported a 25.4% year-on-year (y-o-y) rise in standalone net profit to Rs 6,193.81 crore in the December quarter of FY22 on the back of a 23.4% y-o-y rise in net interest income (NII) to Rs 12,236 crore. The net interest margin (NIM) – a key measure of profitability – stood at 3.96%, down four basis points (bps) from 4% in the previous quarter. 

ICICI Bank’s total advances increased 16% y-o-y to Rs 8.14 lakh crore. The retail loan portfolio grew 19% y-o-y and constituted 61.3% of the total loan portfolio as on December 31, 2021. The domestic wholesale banking portfolio grew 13% y-o-y. Total deposits increased 16% y-o-y to Rs 10.17  lakh crore and the bank’s average current account savings account (CASA) ratio stood at 44.9%, up from 41.8% a year ago. Term deposits increased 12% to Rs 5.37 lakh crore. 

The bank’s management said it does not see the ongoing third wave of the pandemic as a threat. Sandeep Batra, executive director at the bank, said as things stand, the third wave may have created local disruptions. “We do not anticipate, at this point of time, any significant economic disruptions to the portfolio that we have. Anyway, from our perspective, we have a Covid provision which is about Rs 6,400 crore, which we have not released during the quarter. We will just wait for the third wave to probably subside,” Batra said.

Provisions fell 27% y-o-y to Rs 2,007 crore. The total fund based outstanding to all borrower accounts undergoing resolution under various regulatory schemes stood at Rs 9,684 crore, or 1.2% of total advances as on December 31, 2021, a similar level compared to September 30, 2021. The bank held provisions amounting to Rs 2,436 crore against these borrowers under resolution, as of December 31, 2021.

Additions to gross non-performing assets (NPA) fell to Rs 4,018 crore in the December quarter from Rs 5,578 crore in the September quarter. Retail slippages were at Rs 3,853 crore and that for corporate and small and medium enterprises (SMEs) stood at Rs 165 crore. ICICI Bank’s gross NPA ratio at the end of December stood at 4.13%, 69 bps lower than 4.82% at the end of September, while the net NPA ratio decreased 14 bps sequentially to 0.85%. 

Batra said the bank made recoveries worth Rs 4,200 crore in Q3. “Amongst this Rs 4,200 crore, most of the recoveries have been from the retail side. We had about Rs 3,700 crore of recoveries from retail and about Rs 482 crore from the corporate and SME book,” he said.

The bank’s total capital adequacy as on December 31, 2021 was 19.79% and the tier-1 capital adequacy was 18.81%, compared to the minimum regulatory requirements of 11.7% and 9.7%, respectively. ICICI Bank shares on the BSE closed at Rs 804.60 on Friday, down 0.66% from their previous close.

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