ICICI Bank Q2 net climbs 30%, Net Interest Income rises

ICICI Bank Limited on Saturday reported second-quarter standalone net profit grew 30% to ₹5,511 crore, helped by a 25% year-on-year increase in net interest income (NII) to ₹11,690 crore.

The net interest margin improved to 4%, from 3.57% in the year-earlier quarter.

Total deposits grew by 17% in the quarter to ₹9,77,449 crore and the domestic loan portfolio expanded by 19%.

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

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

He said the bank’s Net NPA ratio declined from 1.16% on June 30, to 0.99% as of September 30, the lowest level it has been since December 31, 2014.

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

The retail loan portfolio grew by 20% year-on-year and 5% sequentially and comprised 62.1% of the total loan portfolio as at September 30. The business banking portfolio grew by 43% year-on-year and 12% sequentially.

Net NPAs decline

Net non-performing assets declined by 12% sequentially to ₹8,161 crore, from ₹9,306 crore as on June 30.

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

The gross NPA additions declined to ₹5,578 crore, from ₹7,231 crore in the preceding three months.

Recoveries and upgrades of NPAs, excluding write-offs and sale, increased to ₹5,482 crore, from ₹3,627 crore in the first quarter.

The gross NPAs written off were ₹1,717 crore. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines was ₹9,684 crore or 1.3% of total advances on September 30, compared to ₹4,864 crore on June 30.

The bank said it holds provisions amounting to ₹1,950 crore against borrowers under 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 on June 30.

The lender said its total capital adequacy as at September 30 was 19.52% and Tier-1 capital adequacy (including profits for H1-2022) was 18.53% compared with the minimum regulatory requirements of 11.08% and 9.08%, respectively.