ICICI Bank on Saturday reported second-quarter standalone net profit jumped more than sixfold to ₹4,251 crore, from ₹655 crore a year earlier, buoyed by lower provisioning.
Net interest income at the country’s second-largest private lender rose 16% to ₹9,366 crore in the three months ended September 30, from ₹8,057 crore in the year-earlier period .
The net interest margin, however, was 3.57%, compared with 3.64% in 2019’s September quarter, reflecting surplus liquidity with the bank, ICICI said in a filing with exchanges.
Provisions (excluding provision for tax) were ₹2,995 crore, compared with ₹2,507 crore a year earlier.
“This includes provision of ₹497 crore made on a prudent basis on loans aggregating to ₹1,410 crore that were not classified as non-performing pursuant to the Supreme Court’s interim order dated September 3, 2020, directing that accounts which were not classified as non-performing till August 31, 2020, should not be classified as non-performing until further orders,” the bank said.
At September 30, 2020, the bank held Covid-19 related provision of ₹8,772 crore. During the quarter the bank’s total deposits grew by 20% year-on-year to ₹832,936 crore.
Its Net non-performing asset (NPA) ratio decreased from 1.23% at June 30, 2020 to 1.00% at September 30, 2020; including loans not classified as NPA pursuant to the Supreme Court’s interim order, net NPA ratio would have been 1.12%, it said.
The provision coverage ratio increased from 78.6% at June 30, 2020 to 81.5% at September 30, 2020.
The bank’s total capital adequacy ratio was 19.33% and Tier-1 capital adequacy ratio was 17.89%.
During the quarter, the gross additions to NPAs were ₹ 3,017 crore. Recoveries and upgrades, excluding write-offs, from nonperforming loans were ₹ 1,945 crore.
During the period the retail loan portfolio grew by 13% year-on-year and disbursements have returned to pre Covid levels. Retail loans comprised 65.8% of the total loan portfolio. Including non-fund outstanding, retail was 53.6% of the total portfolio. Growth in the performing domestic corporate portfolio was about 7% year-on-year.
The domestic advances grew by 10% year-on-year. Total advances increased by 6% year-on-year to ₹ 652,608 crore from ₹ 613,359 crore in the year ago period.
ICICI Bank reported consolidated net profit of ₹4,882 crore compared ₹ 1,131 crore in the year ago period. The consolidated profit after tax in Q2- 2020 had a one-time additional charge due to re-measurement of accumulated deferred tax assets at the revised marginal tax rate. The consolidated return on equity was 14.2% in second quarter, the bank said.
Consolidated assets grew by 15% year-on-year to ₹ 1,476,014 crore from `₹ 1,288,190 crore a year ago.
