ICICI bank’s Q4FY22 net profit jumps 59%, announces changes in key management

  • The bank also announced changes in its key management with Vishakha Mulye, the head of wholesale banking, stepping down and Anup Bagchi, the head of retail business, replacing her

Gopika Gopakumar
Updated23 Apr 2022
On the earnings, net interest income which is the difference between interest earned and interest expended, rose 21% to  <span class='webrupee'>₹</span>12,605 crore in Q4FY22 from  <span class='webrupee'>₹</span>10,431 in the corresponding quarter a year ago.
On the earnings, net interest income which is the difference between interest earned and interest expended, rose 21% to ₹12,605 crore in Q4FY22 from ₹10,431 in the corresponding quarter a year ago.

Private sector lender ICICI Bank reported a 59% year on year in net profit rose to 7,019 crore at the end of March quarter owing to strong net income growth and lower provisions. The bank had posted a net profit of 4,403 crore in the March quarter of the previous fiscal FY21.

The bank also announced changes in its key management with Vishakha Mulye, the head of wholesale banking, stepping down and Anup Bagchi, the head of retail business, replacing her. Rakesh Jha, chief financial officer, will oversee the retail business. These changes come at a time when the banking industry is witnessing a turnaround in credit cycle with both retail and corporate business picking up.

On the earnings, net interest income which is the difference between interest earned and interest expended, rose 21% to 12,605 crore in Q4FY22 from 10,431 in the corresponding quarter a year ago.

Net interest margin stood at 4 % at the end of March quarter compared to 3.96% in the quarter ended 31 December 2021

Loan book grew by 17% year on year to 8.59 lakh crore as on 31 March 2022. Retail loan portfolio, excluding rural loans, grew by 20% year-on-year and comprised 52.8% of the total loan portfolio as on 31 March 2022. Growth in the domestic wholesale banking portfolio was 10% year-on-year during the March quarter.

Total deposits increased by 14% year-on-year to 1.06 lakh crore as on 31 March 2022.

“We are focussed on growing organically. There are opportunities in buyouts of portfolios which we have been doing. We are happy to focus on the kind of growth we are growing,” said Sandeep Batra, executive director, ICICI bank in the earnings call.

The bank’s asset quality improved as gross non-performing assets as a percentage of total loans stood at 3.60% in Q4FY22 as against 4.13% in Q3FY22. Net NPA stood at 0.76% in Q4FY22 as against 0.85% in Q3FY22. The bank added fresh bad loan worth 4,204 crore in Q4-2022 compared to 4,018 crore in Q3-2022. Recoveries and upgrades of NPAs, excluding write-offs and sale increased to 4,693 crore in Q4-2022 from 4,209 crore in Q3-2022.

Provisions and contingencies in Q4FY22 drastically dropped to 1,068.95 crore compared to 2 883.47 crore in Q4 last year. However the bank made an additional contingency provision of 1,025.00 crore on a prudent basis, taking the total contingency provision to 7,450.00 crore at end end of March 2022.

The provision coverage ratio on non-performing assets was 79.2% on 31 March 2022.

“There are uncertainties around geopolitical situation and the consequent inflation. Contingency provision is therefore more on a prudent basis. We continue to be optimistic about Indian economy. We will assess the provisions every quarter,” Batra added.

ICICI bank’s board also recommended a dividend of 5 per share in line with applicable guidelines.

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