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ICICI Bank Q4 profit spikes 260.5% to Rs 4,402.61 crore, net interest income grows 16.9% –

Private-sector lender ICICI Bank on April 24 clocked a massive 260.5 per cent year-on-year (YoY) growth in standalone profit at Rs 4,402.61 crore for quarter ending March 2021. The profit in the corresponding period last year was at Rs 1,221.4 crore.

Net interest income, the difference between interest earned and interest expended, grew by 16.9 per cent to Rs 10,431.13 crore in Q4FY21, compared to Rs 8,926.9 crore in Q4FY20.

The net interest margin at 3.84 percent in March quarter FY21 expanded sequentially from 3.67 percent in the quarter ended December 2020, but contracted a bit year-on-year from 3.87 percent in March quarter 2020.

Advances at Rs 7.33 lakh crore as of March 2021 increased by 14 per cent year-on-year, with retail loan portfolio growth at 20 percent YoY which comprised 67 percent of the total loan portfolio.

“Growth in the performing domestic corporate portfolio was about 13 per cent year-on-year driven by disbursements to higher rated corporates and public sector undertakings (PSUs) across various sectors to meet their working capital and capital expenditure requirements,” said the bank, adding deposits at the end of March 2021 grew by 21 percent year-on-year to Rs 9.3 lakh crore.

The bank said it had a network of 5,266 branches and 14,136 ATMs at the end of March 2021.

Provisions and contingencies, as expected, fell sharply by 51.7 per cent year-on-year to Rs 2,883.47 crore in the quarter ended March 2021, but the same increased 5.2 per cent on sequential basis.

During Q4FY21, ICICI Bank said it utilised contingency provision amounting to Rs 3,509 crore towards proforma NPAs as of December 2020, as these loans have now been classified as per the RBI guidelines.

“Further, the bank made additional COVID-19 related provisions of Rs 1,000 crore during March quarter FY21, and as of March 2021, the bank held COVID-19 related provision of Rs 7,475 crore,” the private sector lender added.

On the asset quality front, the lender said the net NPA ratio declined to 1.14 per cent at March 2021 from 1.26 per cent (on a proforma basis at December 2020.

“Excluding NPAs, the total fund based outstanding to all borrowers was Rs 3,927 crore, or about 0.5 per cent of the total loan portfolio, at March 2021. The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding fund and non-fund based outstanding to NPAs) was Rs 13,098 crore at March 2021 compared to Rs 13,654 crore at December 2020,” the bank added.

Recoveries and upgrades, excluding recoveries from proforma NPAs, write-offs and sale, from non-performing loans were Rs 2,560 crore in the quarter ended March 2021, said the bank.

Non-interest income (other income) has seen a 3.4 per cent year-on-year decline at Rs 4,111.35 crore for the March quarter.  “Fee income grew by 6 percent year-on-year to Rs 3,815 crore in Q4FY21. There was a treasury loss of Rs 25 crore during the quarter compared to a profit of Rs 242 crore in the corresponding period,” said the bank.

The treasury loss in Q4FY21 reflects the increase in yields on fixed income and government securities, the bank added.

Pre-provision operating profit (PPoP) increased 15.6 per cent to Rs 8,539.83 crore in Q4FY21 compared to the corresponding period.

Tax expenses for the quarter at Rs 1,253.75 crore shot up significantly by 522.9 per cent over Rs 201.29 crore in March quarter 2020.

ICICI Bank has recommended a dividend of Rs 2 per share.

On Saturday, it has approved fund raising by way of issuances of debt securities including by way of non-convertible debentures in domestic markets upto an overall limit of around Rs 20,000 crore by way of private placement and issuances of bonds/notes/offshore certificate of deposits in overseas markets upto $1.50 billion in single/multiple tranches for a period of one year.

At the consolidated level, its profit after tax at Rs 4,886 crore in Q4FY21 increased sharply compared to Rs 1,251 crore in Q4FY20.

Consolidated assets grew by 14 per cent year-on-year to Rs 15,73,812 crore at the end of March 2021, said the bank.

ICICI Bank’s share price has registered an 8.3 per cent gain in calendar year 2021 so far and shot up 64 per cent in the last one year, outshining the Bank Nifty that clocked 1.7 per cent and 57 per cent gains, respectively.

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Mutual funds reduced their shareholding in ICICI Bank to 26.07 per cent at the end of March 2021, from 26.35 per cent as of December 2020. In the same period, LIC also lowered its stake in the bank to 8.23 per cent from 8.4 per cent, but foreign portfolio investors increased stake in the bank to 47.78 per cent from 47.43 per cent.

The name of Abu Dhabi Investment Authority, which had a 1.35 per cent stake, as of December 2020 under the FPI category, did not appear in the latest shareholding pattern of March 2021.