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Photo: Reuters
Photo: Reuters

ICICI Bank net profit up 36% to 2,599 crore in June quarter

Treasury income stood at 3,763 crore at the April-June period compared to 179 crore in the year-ago, the private sector lender said

MUMBAI : ICICI Bank Ltd’s net profit rose 36% year-on-year from 1,908.03 crore a year ago to 2,599 crore in the June quarter, owing to higher treasury income from the sale of investments.

A Bloomberg poll of 16 analysts had estimated Q1 net profit at 2,728.6 crore.

Treasury income stood at 3,763 crore at the April-June period compared to 179 crore in the year-ago, the private sector lender said on Saturday. The bank sold a 4% stake in ICICI Lombard General insurance and 1.5% in ICICI Prudential Life Insurance.

Its core income, or net interest income, rose 20% y-o-y from 7,737 crore in the year-ago to 9,280 crore. Net interest margin fell to 3.69% in the quarter compared to 3.87% in the previous quarter, reflecting higher liquidity with the bank due to strong deposit inflows and limited credit demand due to the nationwide lockdown.

The bank’s asset quality improved with gross non-performing assets (NPAs) falling to 40,386 crore from 45,763 crore in the corresponding period of the previous year. Gross NPA as a percentage of total assets fell to 5.46% from 5.53% in the previous quarter.

It made higher provisions of 7,593 crore than 3,495 crore in the year-ago, besides an additional 5,550 crore in covid-related provisions, compared to 2,725 crore in the March quarter.

“We wanted to be prudent and completely cushion the balance sheet," said Sandeep Batra, executive director, ICICI Bank.

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