ICICI Bank reported second quarter standalone net profit grew by 35.8% year-on-year to ₹10,261 crore from ₹7,558 crore the year earlier due to improvement in asset quality and healthy growth in Net Interest Income (NII).
Core operating profit grew by 21.7% year-on-year to ₹14,314 crore from ₹11,765 crore a year earlier; excluding dividend income from subsidiaries/associates, core operating profit grew by 22.9% year-on-year in the quarter ended September 30,2023, the bank said in a filing with exchanges.
NII increased by 23.8% year-on-year to ₹18,308 crore from ₹14,787 crore in the year earlier.
The bank said its net interest margin was 4.53% in the second quarter compared with 4.31% in the same period the earlier year.
Provisions (excluding provision for tax) were ₹583 crore compared with ₹1,644 crore a year earlier.
During the quarter, the bank’s net domestic advances grew by 19.3% year-on-year. The retail loan portfolio grew by 21.4% year-on-year and comprised 54.3% of the total loan portfolio as of September 30, 2023.
Including non-fund outstanding, the retail portfolio was 46% of the total portfolio as of September 30, 2023. The business banking portfolio grew by 30.3% year-on-year.
The SME business, comprising borrowers with a turnover of less than ₹250 crore, grew by 29.4% year-on-year. The rural portfolio grew by 17.3% year-on-year. The domestic corporate portfolio grew by 15.3% year-on-year. Total advances increased by 18.3% year-on-year to ₹ 11,10,542 crore as of September 30, 2023.
Total period-end deposits increased by 18.8% year-on-year to ₹12,94,742 crore.
The gross NPA ratio declined to 2.48% as of September 30, 2023 from 2.76% on June 30, 2023.
The net NPA ratio declined to 0.43% as of September 30, 2023 from 0.48% on June 30, 2023 and 0.61% on September 30, 2022.
The net addition to gross NPAs, excluding write-offs and sale, were ₹116 crore in Q2 2024 compared with ₹1,807 crore in Q1 2024.
The gross NPA additions were ₹4,687 crore in Q2 2024 as compared to ₹5,318 crore in Q1-2024.
Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹4,571 crore compared with ₹3,511 crore in Q1 2024.
The bank has written off gross NPAs amounting to ₹1,922 crore in Q2 2024, Sandeep Batra, executive director, ICICI Bank said in a conference call.
The provision coverage ratio on NPAs was 82.6% as of September 30, 2023, he said.
Asked if the bank had seen any stress in personal loans, he answered in the negative. He said the bank would keep on lending to any segment based on its risk calibrated strategy.
“We are quite happy with the [personal loan and credit card advance] portfolio. [in case of any build up] we ensure it is written off pretty fast,” Mr. Batra said while commenting on any likely hood of stress in personal loan portfolio.
He said though risk is building up [in the industry] in the lower ticket sized [sub ₹50,000] personal loan segment, ICICI Bank has no presence in that segment. “We continuously monitor the portfolio and loans are given to customers with secured income,” he added.
Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹3,536 crore or 0.3% of total advances as of September 30, 2023 from ₹3,946 crore on June 30, 2023, he added.
The bank holds provisions amounting to ₹1,107 crore against these borrowers under resolution. In addition, the bank continues to hold contingency provisions of ₹13,100 crore as of September 30, 2023.
The bank’s total capital adequacy ratio as of September 30, 2023 was 17.6% and Tier-1 capital adequacy was 16.9% compared to the minimum regulatory requirements of 11.70% and 9.70%, respectively.
The consolidated profit after tax increased by 36.1% year-on-year to ₹10,896 crore in Q2 2024 from ₹8,007 crore in Q2 2023.
Published - October 21, 2023 08:31 pm IST
