ICICI Bank Q3 profit rises 25% to ₹6,194 cr.

Remain optimistic about economy: ED

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.”

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.

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.

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