ICICI Bank Ltd. said third-quarter standalone net profit rose 25% from a year earlier to ₹6,194 crore, on account of overall improvement in net interest margin, fee income, core operating profit and a 27% reduction in provisions for bad loans.
This was the highest-ever quarterly profit, it said.
“There was all-round growth during the quarter,” said Sandeep Batra, ED. “We have adequate provisions to meet any situation. There has been a localised impact of the third wave. We do not anticipate any significant disruption to the economic activity at this point and remain optimistic about the overall economy.”
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Interest margin rises
Core operating profit (profit before provisions and tax, excluding treasury income) grew by 25% year-on-year (YoY) to ₹10,060 crore and net interest income rose by 23%. Net interest margin stood at 3.96%, compared with 3.67% in the year-earlier period.
Fee income grew by 19% to ₹4,291 crore.
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Total deposits rose 16% to ₹10,17,467 crore. Net NPA ratio declined from 0.99% at September 30, 2021, to 0.85% at December 31, 2021, the lowest since March 31, 2014. Coverage ratio was 79.9% at December 31, 2021, the bank said in a filing.
Provisions (excluding provision for tax) declined by 27% to ₹2,007 crore from ₹2,742 crore a year earlier.
Net NPAs shrink
Net non-performing assets declined by 10% sequentially to ₹7,344 crore.
The gross NPA additions declined to ₹4,018 crore from ₹5,578 crore in the previous quarter and ₹7,231 crore in the quarter ended June 30, 2021.
Excluding NPAs, the total fund based outstanding to all borrowers under resolution was ₹9,684 crore or 1.2% of total advances at December 31, 2021, a similar level compared to September 30, 2021, the bank said.
The bank continues to hold COVID-19 provisions of ₹6,425 crore as of December 31, 2021, the same level as September 30, 2021.
The loan and non-fund based outstanding to performing borrowers rated BB and below reduced to ₹11,842 crore at December 31, 2021, from ₹12,714 crore at September 30, 2021.
The bank said consolidated profit after tax increased by 19% year-on-year to ₹6,536 crore.