Private lender ICICI Bank’s standalone net profit up 30% ₹5,511 crore, which is the highest ever for the lender, in the second quarter ended September 30 (Q2FY22) mainly on account of strong credit growth and lower provisioning. that was ₹4,251 crore in the same quarter (Q2FY21) last year.
Provisions declined 9% year-on-year ₹2,714 crore in the second quarter from ₹2,995 crore in the year-ago period.
Sequentially, the lender’s profit was up 19.3% ₹4,616 crore in the June quarter (Q1FY22).
Bank’s net interest income (NII) — the difference between the interest paid by the lender and its payments — increased by 25% ₹11,690 crore in the September quarter. He was ₹9,366 crore in Q2FY21.
Meanwhile, net interest margin (NIM) rose to 4% in the second quarter, from 3.89% in the June quarter and 3.57% in the previous year period.
Lender’s core operating profit jumped 23% year-on-year ₹9,518 crore in the quarter ended September.
Lender’s non-interest income (NII) up 26% year-on-year ₹4,400 crore in Q2FY22 from ₹3,486 crore in Q2FY21.
“With increased economic activity, distributions across all retail products increased sequentially in the second quarter. Mortgage disbursements were
This reflects an increase in demand coupled with the bank’s seamless customer onboarding experience through pre-approved offers and digitization, close to the level seen in the March quarter of FY 2011,” ICICI Bank said in a filing.
On the asset quality front, quarter-end gross non-performing assets (NPAs) stood at 4.82%, down from 5.15% in the previous June quarter and 5.17% in the year-ago period.
Net NPAs declined 12% sequentially during the quarter ₹to 8,161 crore ₹9,306 crore, while the net NPA ratio declined by 0.99% in Q2 to 1.16% in Q1. Net NPA ratio was lowest since December 2014
Total deposits grew 17% year-on-year and 6% sequentially ₹9.77 lakh crore in the September quarter.
The Bank’s overall capital adequacy stood at 19.52% and Tier-1 capital adequacy at 18.53% at the end of Q2, which exceeded the minimum regulatory requirements of 11.08% and 9.08%, respectively.
Shares of ICICI Bank hit an all-time high on Friday ₹765.85 and finally closed up 0.5% ₹759.30 on NSE.
credit enhancement
The retail loan portfolio grew 20% year-over-year and 5% sequentially, and comprised 62.1% of the total loan portfolio at the end of the second quarter.
Domestic advances grew by 19% year-on-year and 4% sequentially, while total advances grew by 17% year-on-year and 4% sequentially during the period under review. ₹7.64 lakh crore.
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