Private lender ICICI Bank on Saturday reported a 29.6 percent rise in standalone net profit at Rs 5,511 crore for the quarter ended September 30, 2021.
In the corresponding quarter last year, the bank posted a net profit of Rs 4,251 crore. CNBC-TV18 Poll had predicted a profit of Rs 5,330 crore for the quarter under review.
The profit before tax grew by 37 percent year-on-year to Rs 7,201 crore in Q2-2022 from Rs 5,266 crore in Q2-2021. The core operating profit (profit before provisions and tax, excluding treasury income) grew by 23 percent year-on-year to Rs 9,518 crore in the quarter ended September 30, 2021.
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The net interest income (NII), the difference between interest earned and interest expended, increased by 25 percent year-on-year to Rs 11,690 crore in Q2-2022 from Rs 9,366 crore in Q2-2021. The net interest margin increased to 4.00 percent in Q2-2022 from 3.89 percent in the quarter ended June 30, 2021 (Q1-2022) and 3.57 percent in Q2-2021.
The non-interest income, excluding treasury income, increased by 26 percent year-on-year to Rs 4,400 crore in Q2-2022 from Rs 3,486 crore in Q2-2021. Fee income grew by 21 percent year-on-year to Rs 3,811 crore in Q2-2022 from Rs 3,139 crore in Q2-2021. Fees from retail, business banking and SME customers increased by 25 percent year-on-year and constituted about 78 percent of total fees in Q2-2022.
Treasury income was Rs 397 crore in Q2-2022 compared to Rs 542 crore in Q2-2021. The treasury income in Q2-2021 included a gain of Rs 305 crore from the sale of shares of ICICI Securities. Provisions (excluding provision for tax) declined by 9 percent year-on-year to Rs 2,714 crore in Q2-2022 from Rs 2,995 crore in Q2-2021.
Asset Quality
The net non-performing assets declined by 12 percent sequentially to Rs 8,161 crore on September 30, 2021, from Rs 9,306 crore on June 30, 2021. The net NPA ratio declined to 0.99 percent on September 30, 2021, from 1.16 percent on June 30, 2021. The net addition to gross NPAs declined to Rs 96 crore during Q2-2022 from Rs 3,604 crore in Q1-2022.
The gross NPA additions declined to Rs 5,578 crore in Q2-2022 from Rs 7,231 crore in Q1-2022. Recoveries and upgrades of NPAs, excluding write-offs and sales, increased to Rs 5,482 crore in Q2-2022 from Rs 3,627 crore in Q1-2022. The gross NPAs written off were Rs 1,717 crore in Q2-2022.
Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines was Rs 9,684 crore or 1.3 percent of total advances on September 30, 2021, compared to Rs 4,864 crore on June 30, 2021. The Bank holds provisions amounting to Rs 1,950 crore against borrowers under resolution as of September 30, 2021.
In addition, the bank continues to hold COVID-19 provisions of Rs 6,425 crore as of September 30, 2021, the same level as of June 30, 2021. The loan and non-fund based outstanding to performing borrowers rated BB and below reduced to Rs 12,714 crore on September 30, 2021, from Rs 13,975 crore on June 30, 2021.
Deposit Growth
Total deposits increased by 17 percent year-on-year and 6 percent sequentially to Rs 977,449 crore on September 30, 2021. Average current account deposits increased by 36 percent year-on-year and 5 percent sequentially in Q2-2022. Average savings account deposits increased by 25 percent year-on-year and 4 percent sequentially in Q2-2022.
Total term deposits increased by 12 percent year-on-year to Rs 526,745 crore on September 30, 2021. The bank had a network of 5,277 branches and 14,045 ATMs on September 30, 2021.
Credit Growth
The retail loan portfolio grew by 20 percent year-on-year and 5 percent sequentially, and comprised 62.1 percent of the total loan portfolio on September 30, 2021. Including non-fund outstanding, the retail loan portfolio was 51.6 percent of the total portfolio on September 30, 2021. The business banking portfolio grew by 43 percent year-on-year and 12 percent sequentially on September 30, 2021.
The SME business, comprising borrowers with a turnover of less than Rs 250 crore, grew by 42 percent year-on-year and 11 percent sequentially on September 30, 2021. Growth in the domestic wholesale banking portfolio was 14 percent year-on-year on September 30, 2021.
The domestic advances grew by 19 percent year-on-year and 4 percent sequentially on September 30, 2021. Total advances increased by 17 percent year-on-year and 4 percent sequentially to Rs 764,937 crore on September 30, 2021, from Rs 652,608 crore on September 30, 2020, and Rs 738,598 crore on June 30, 2021.
The bank’s total capital adequacy on September 30, 2021, was 19.52 percent and Tier-1 capital adequacy (including profits for H1-2022) was 18.53 percent compared to the minimum regulatory requirements of 11.08 percent and 9.08 percent respectively.
