ICICI Bank’s Q1 net increased by 50% to ₹ 6,905 billion as loans increased

On Saturday, ICICI Bank Ltd. said that its first-quarter standalone net profit increased by 50% from the same period the previous year to 6,905 crore, thanks to strong loan growth and an improvement in asset quality.

The private lender’s consolidated net profit increased by 55% year over year to ₹7,385 crore.

Sandeep Batra, executive director of ICICI Bank, stated in a post-earnings conference call that “our core operating profit (profit before provisions and tax, excluding treasury income) climbed by 19 percent year-over-year to 10,273 crore in a risk-calibrated way.”

According to him, the bank’s total period-end deposits increased by 13% to 1,050,349 crore, and net interest income increased by 21% to 13,210 crore.

The domestic loan portfolio of the bank increased by 22% during the quarter, and the net NPA ratio decreased to 0.70% as of June 30 from 0.76% at the end of the previous quarter on March 31, 2022.

“Net NPA is at a comfortable level. We are pleased with how the net NPA has decreased. At the moment, we are receiving some written responses,” according to Mr. Batra.

Compared to net additions of ₹3,604 crore a year earlier, net additions to gross NPAs totaled 382 crore.

Gross NPA additions in the first quarter were ₹5,825 crores, up from ₹4,204 crores in the three months ending on March 31.

The bank reported in a filing that NPA recoveries and upgrades, excluding write-offs and sales, totaled ₹5,443 billion, up from ₹4,693 billion in the prior quarter.

In the first quarter of 2023, gross NPAs were wiped down for ₹1,126 crore. As of June 30, 2022, the provisioning coverage ratio for NPAs was 79.6%, according to the report.

The entire fund balance outstanding to all borrowers under resolution in accordance with the different existent regulations/guidelines decreased from ₹8,267 crore on March 31 to ₹7,376 crore, or 0.8 percent of total advances, when NPAs are excluded.

As of June 30, the bank claimed to have provisions totaling ₹2,290 crore against these borrowers that were still being resolved. The bank also had ₹8,500 crore in contingency provisions.

On a standalone basis, Tier-1 capital adequacy ratio was 17.9 percent, while overall capital adequacy ratio was 18.7 percent, including first-quarter earnings.

The net interest margin increased from 3.89 percent in the same period last year to 4.01 percent this quarter.

The bank’s provisions (excluding tax provisions) fell by 60%, from ₹2,852 crore to ₹1,144 crore. According to Mr. Batra, precautions, including a contingency provision of ₹1,050 crore, had been taken.

The bank’s retail loan portfolio increased by 24 percent during the quarter, making up 53.1% of the entire loan portfolio. Domestic advances increased by 22 percent, and the domestic wholesale banking portfolio increased by 14 percent. The total amount of advances grew by 21% to ₹8,95,625 crore.


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