ICICI Bank Q2 results: Net profit jumps 30% to Rs 5,511 crore; NIM at 4%

NEW DELHI: ICICI Bank on Saturday reported a 30 per cent year-on-year (YoY) jump in standalone net profit at Rs 5,511 crore for September quarter compared with Rs 4,251 crore in the corresponding quarter last year.

Net interest income (NII) for the quarter climbed 25 per cent YoY to Rs 11,690 crore in September quarter compared with Rs 9,366 crore in the year-ago quarter.

The bank in a filing to BSE said its provisions (excluding provision for tax) declined 9 per cent YoY to Rs 2,714 crore from Rs 2,995 crore YoY. Gross non-performing assets (NPAs) as percentage of gross advances fell to 4.82 per cent from 5.15 per cent in June quarter and 5.17 per cent in the same quarter last year.

Net interest margin (NIM) climbed to 4 per cent for the quarter from 3.89 per cent in June quarter and 3.57 per cent in the year-ago quarter.

The bank said its non-interest income, excluding treasury income, jumped 26 per cent YoY to Rs 4,400 crore from Rs 3,486 crore. Fee income rose 21 per cent YoY to Rs 3,811 crore from Rs 3,139 crore.

Fees from retail, business banking and SME customers increased 25 per cent YoY and constituted about 78 per centof total fees, the bank said.

Meanwhile, treasury income fell to Rs 397 crore from Rs 542 crore YoY. The fall was due to the higher income, on account of Rs 305 crore sale of shares in ICICI Securities last year.

"The gross NPA additions declined to Rs 5,578 crore from Rs 7,231 crore in June quarter. Recoveries and upgrades of NPAs, excluding write-offs and sale, increased to Rs 5,482 crore in Q2 from Rs 3,627 crore in Q1 . The gross NPAs written off were Rs 1,717 crore in Q2. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines was Rs 9,684 crore or 1.3 per cent of total advances at September 30 compared to Rs 4,864 crore at June 30," the bank said.

"With the increase in economic activity, disbursements across all retail products increased sequentially in Q2FY22. Mortgage disbursements were close to the level seen in the quarter ended March 31, 2021, reflecting the increase in demand coupled with the bank’s seamless customer onboarding experience through pre-approved offers and digitisation," the bank said.

Disbursements of personal loans and auto loans were also close to March quarter. The value of credit card spends grew 47 per cent sequentially.

"Spends across most categories other than travel crossed March 2021 levels in September 2021. The bank continued to focus on providing the full suite of banking products to corporate clients and their ecosystems and lending to well-rated corporates," the bank said.