Q4 performance: ICICI Bank net profit up 261% y-o-y

The average current account deposits increased (CASA) by 34% y-o-y. Average savings account deposits increased by 21% y-o-y during Q4FY21.

ICICI Bank on Saturday reported a 261% year-on-year (y-o-y) rise in its net profit at Rs 4,402 crore in the March quarter (Q4FY21) on the back of healthy interest income and reduced provisioning.

The operating profit of the lender increased 15.6% y-o-y to Rs 8,540 crore.

The interest income (NII) increased 17% y-o-y and 5.24% quarter-on-quarter (q-o-q) to Rs 10,431 crore.

Provisions for the lender declined 51.7% y-o-y to Rs 2,883 crore.

However, the bank has made an additional Covid-19 related provision of Rs 1,000 crore in the March quarter. The provision coverage ratio stood at 77.7% at the end of March, 2021.

Sandeep Batra, executive director, ICICI Bank, said, “The growth in business banking continued to be robust,leveraging the bank’s distribution network and digital platforms such asInstaBIZ and Trade Online.”

The credit card spends in Q4-2021 increased substantially over Q3FY21 driven by spends across electronics, wellness and jewellery categories, he added. Speaking on the impact of the current wave of Covid-19, Batra said, “There has been a bit of a slowdown in the current quarter, but these are still early days as yet.”

The net interest margin (NIM) of the lender declined 3 basis points (bps) y-o-y at 3.84%, but increased 17 bps sequentially.

The asset quality of the lender deteriorated a bit during the March quarter, after the standstill on declaring non-performing assets was lifted by the apex court. Gross non-performing assets (NPAs) ratio of the lender increased 58 bps to 4.96%, compared to 4.38% in the previous quarter.

Similarly, net NPAs ratio increased 51 bps to 1.14% from 0.63% in the December quarter. During the quarter, the gross NPA additions, excluding borrowers in the proforma NPAs as of December 31, 2020, were Rs 5,523 crore, Batra said . “Recoveries and upgrades, excluding recoveries from proforma NPAs, write-offs and sale, from non-performing loans were at 2,560 crore in Q4 FY21,” he added.

Advances grew 14% y-o-y to Rs 7.33 lakh crore. The retail loan portfolio grew by 20% y-o-yand 7% sequentially. “The growth in the performing domestic corporate portfolio was about 13% y-o-y driven by disbursements to higher crated corporates and public sector undertakings (PSUs) across various sectors to meet their working capital and capital expenditure requirements,” the bank said.

Deposits saw a robust growth of 21% y-o-y at Rs 9.32 lakh crore. The average current account deposits increased (CASA) by 34% y-o-y. Average savings account deposits increased by 21% y-o-y during Q4FY21.

The fee income of the lender increased 6% y-o-y to Rs 3,815 crore. There was a treasury loss of Rs 25 crore in Q4FY21,compared to a profit of Rs 242 crore during the same quarter last year. The treasury loss in the March quarter reflects the increase in yields on fixed income and government securities, the bank said.

The capital adequacy ratio of the lender stood at 19.12% and tier-1 capital adequacy ratio of 18.06% at the end of the March quarter.