ICICI Bank’s second quarter net grows 30%, net interest income grows

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Net interest income jumps 25%, helping to boost profit to 5,511 crore; bad debts decrease sequentially

ICICI Bank Limited announced on Saturday that stand-alone second quarter net profit rose 30% to 5,511 crore, helped by a 25% year-over-year increase in net interest income (NII) to 11,690 crore.

The net interest margin improved to 4% from 3.57% in the previous year quarter.

Total deposits increased 17% in the quarter to 977,449 yen crore and the domestic loan portfolio grew 19%.

“We are optimistic about the growth of the Indian economy and we see many opportunities to increase our core operating profit in a risk-calibrated manner,” said Executive Director Sandeep Batra.

“We believe that our continued investments in technology, people and the distribution network, our prudent risk management practices and our strong balance sheet will enable us to drive growth” in core operating income, added Mr. Batra .

He said the bank’s net NPA ratio fell from 1.16% as of June 30 to 0.99% as of September 30, its lowest level since December 31, 2014.

Provisions (excluding tax provision) fell 9% to ₹ 2,714 crore, from ₹ 2,995 crore a year earlier.

The personal loan portfolio grew 20% year-on-year and 5% sequentially and represented 62.1% of the total loan portfolio as of September 30. The merchant banking portfolio grew 43% year-on-year and 12% sequentially.

Decrease in net NPAs

Net non-performing assets fell 12% sequentially to 8,161 crore yen, from 9,306 crore yen as of June 30.

The net addition to gross NPA declined to 96 crore in the quarter, from 3,604 crore in the April-June period.

Gross NPA additions fell to 5,578 crore from 7,231 crore in the previous three months.

NPA recoveries and upgrades, excluding write-offs and sales, increased to 5,482 crore, from 3,627 crore in the first quarter.

The gross NPA written off was 1,717 crore. Excluding APMs, the total outstanding funds to all borrowers subject to resolution under various existing regulations / guidelines was 9,684 crore, or 1.3% of total advances as at September 30, compared to 4,864 crore. crores as of June 30.

The bank said it held provisions amounting to 1,950 crore against borrowers under a resolution as of September 30. In addition, it continues to hold COVID-19 related provisions of 6,425 crore as of September 30, the same level as of June 30.

The lender said its total capital adequacy as of September 30 was 19.52% and the Tier 1 capital adequacy (including first-half 2022 earnings) was 18.53% compared to minimum regulatory requirements of 11.08% and 9.08%, respectively.


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