ICICI Bank reported a consolidated net profit of Rs 7,719 crore, up 58 per cent in the March quarter, helped by a sharp reduction in the amount set aside for bad loans. On a standalone basis, the second largest private sector lender reported a 59 per cent jump at Rs 7,019 crore for the January-March quarter of 2021-22.
It ended the financial year FY22 with a growth of 44 per cent at Rs 23,339 crore. ICICI Bank said in a regulatory filing that the bank’s total income rose to Rs 27,412 crore in the January-March period as against Rs 23,953 crore in the year-ago quarter.
Its core net interest income rose 21 per cent to Rs 12,605 crore during the quarter, driven by over 17 per cent growth in advances and net interest margin widening to 4 per cent, as against 3.84 per cent a year ago. period. Non-interest income excluding treasury income rose 11 per cent to Rs 4,608 crore, while treasury operations posted a profit of Rs 129 crore, as against Rs 25 crore in the year-ago period.
The gross non-performing assets ratio rose sharply to 3.60 per cent as of March 31, 2022, from 4.96 per cent in the year-ago period, resulting in a fall in the amount to be set aside as provisions and contingencies. Recovery and Upgradation increased to Rs 4,693 crore from Rs 4,200 crore in the quarter-ago period, while gross NPAs stood at Rs 2,644 crore. The total provisions stood at Rs 1,068 crore, down from Rs 2,883 crore, and the COVID-related provisions already made by the bank included Rs 1,025 crore as prudential provision over and above Rs 6,425 crore.
Bank’s executive director Sandeep Batra told reporters that the prudential provision has been made on the borrowers of ICICI Bank due to the impact of inflation arising out of current geopolitical events, but loans worth Rs 8.59 lakh crore exposed to such irregularities. Refused to specify the quantity of the booklet. In terms of credit growth, the retail sector grew by 20 per cent in FY12 and now accounts for 44 per cent of the total pie, while wholesale credit has grown by 10 per cent. There has been a jump of 34 per cent in loans given to small businesses with a turnover of up to Rs 250 crore.
Batra said the bank has defined guard rails for all loan segments and will continue its lending activities as per the prescribed parameters. He said the bank does not pursue asset growth. When asked how it plans to deal with the gap with larger counterpart HDFC Bank, which will widen with the merger of the largest private sector lender with HDFC, Batra said ICICI Bank will systematically is focused on growing from and will not see any acquisitions. , Beyond portfolio buys. Batra said the bank’s wholesale lending head Visakha Muley has stepped down, and will be replaced by Anoop Bagchi, who currently handles the retail business, to succeed Rakesh Jha Bagchi, the current chief financial officer. According to a statement, the bank has appointed Anindya Banerjee as Jha’s replacement.
Among group companies, ICICI Prudential Life Insurance jumped 190 per cent to Rs 185 crore in the March quarter, while ICICI Lombard General Insurance’s bottomline declined to Rs 313 crore from Rs 346 crore in the year-ago period. ICICI Securities and ICICI Prudential Asset Management Company reported roughly flat net net worth at Rs 340 crore and Rs 357 crore, respectively, in the quarter. Shares of ICICI Bank on Friday closed 1.95 per cent lower at Rs 747.35 per piece on the BSE, as against a fall of 1.23 per cent.
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