Private sector lender ICICI Bank Ltd. saw its April to June quarter net profit rise 77.6% over the same period last year, on higher core income and lower provisions.
The bank’s net profit for the quarter stood at Rs 4,616 crore, as compared to Rs 2,599 crore a year ago. On a quarter-on-quarter basis it was up by 4.8%.
Analysts at Bloomberg estimated a net profit of Rs 4,362 crore in the Apr-Jun quarter.
Net interest income rose 18% from a year ago to Rs 10,936 crore. This is against a Bloomberg estimate of Rs 10,599 crore. The core income for the bank rose 4.8% sequentially.
Asset Quality
ICICI Bank’s asset quality position worsened with gross non-performing asset ratio at 5.15% as of June 30, compared with 4.96% as of March 31. Net NPA ratio was flat at 1.16% at the end of the first quarter.
Gross additions to bad loans during the quarter were at Rs 7,231 crore.
Recoveries and upgrades stood at Rs 3,627 crore
The bank has written off Rs 1,589 crore worth bad loans
Standard loans to companies rated BB and below stood at Rs 13,957 crore as of June 30, compared with Rs 13,098 crore as of March 31
As of June 30, the bank had restructured loans worth Rs 3,891 crore under the Reserve Bank of India’s one time restructuring scheme. This included 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.
Total provisions fell 62.4% year-on-year to Rs 2,852 crore.
Advances & Deposits
Total advances for the bank rose 17% year-on-year to Rs 7.4 lakh crore. Total deposits rose to Rs 9.26 lakh crore, a growth of 16% from a year ago.
The bank’s domestic loan book improved 20% from a year ago.
Retail advances rose 20% year-on-year and constituted 61.4% of the total loan book.
Domestic corporate loan book rose 11% year-on-year, driven by higher rated corporates and public sector companies
The business banking loan book rose 53% year-on-year and constituted 5.4% of the loan book
Small and medium enterprises loans, comprising of borrowers with turnover of Rs 25 crore and below, rose 43% year-on-year
Total term deposits rose 9% from a year ago to over Rs 5 lakh crore.
