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Home / Industry / Banking /  ICICI bank Q1 net profit rises, asset quality worsens

ICICI bank reported a 78% increase year-on-year in standalone net profit to 4,616 crore for the quarter ended June 30, 2021 owing to higher net interest come and lower provisions. The net profit stood at 2,599 crore in the corresponding quarter last fiscal.

According to Bloomberg analysts, net profit was estimated at 4,362 crore in the Apr-Jun quarter.

Net interest income, the difference between interest earned and interest expended, rose 18% year on year to 10,936 crore in Q1 FY22 from 9,280 crore in Q1 FY21. Net interest margin stood at 3.89% in Q1 FY22 compared to 3.69% in Q1 FY21.

ICICI bank’s asset quality worsened with gross non-performing assets as a percentage of total loan book stood at 5.15% as of 30 June compared with 4.96% as of 31 March. Net NPA ratio was flat at 1.16% at the end of the first quarter. Fresh additions to bad loans during the quarter stood at 7231 crore. Within this, retail and business banking portfolios stood at 6773 crore, corporate and SME portfolio at 458 crore. With the retail book, 961 crore was added from kisan credit card portfolio and 1130 crore from jewel loan portfolio. The management assured that it is comfortable with the quality of loan book despite the impact of the second covid wave.

As of June 30, the bank had restructured loans worth 3,891 crore under the Reserve Bank of India's one time restructuring scheme. This included retail loans worth 925 crore and corporate loans worth 2,956 crore. The bank held provisions worth 632.35 crore against these restructured loans. The bank wrote back covid provisions of 1050 crore made in earlier periods. The covid related provisions stood at 6425 crore as on 30 June.

Total provisions however fell 62.4% year-on-year to 2,852 crore. "During Q1-2022, the bank has changed its policy on non-performing loans to make it more conservative. The change in policy resulted in higher provision on non-performing advances amounting to 1,127 crore for aligning provisions on outsanding loans to the revised policy," ICICI Bank said in a regulatory filing on Saturday.

Non-interest income, excluding treasury income, increased by 56% year on year to 3,706 crore in the first quarter of the ongoing fiscal from 2,380 crore in Q1-2021.

Total Advances for the bank rose to 7.4 lakh crore compared to 7.33 lakh crore in the previous quarter. It however showed a growth of 17% from a year ago period. Total deposits fell to 9.26 lakh crore compared to 9.32 lakh in the previous quarter. Deposits however showed a growth of 16% from a year ago.

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