ICICI Bank June quarter net profit up 36.2 per cent to Rs 2,599 crore

To offload 4% stake in ICICI Securities. Made Covid-19 related provisions of Rs 5,550 cr in the quarter

Private sector lender ICICI Bank has posted 14 per cent rise in profit before tax (PBT) at Rs 3,183 crore in the quarter ended June 2020 (Q1FY21) on robust growth in net interest income and monetisation of stake in subsidiaries.

It had posted a PBT of Rs 2,793 crore in quarter ended June 2019 (Q1FY20).

Its net profit for reporting quarter rose by 36.2 to Rs 2,599 crore from net profit of Rs 1,908 crore in Q1FY20.

The Net Interest Income (NII) grew by 19.9 per cent on a Year-on-Year basis from Rs 7,737 crore in Q1Fy20 to Rs 9,280 crore in Q1Fy21. The net interest margin (NIM) also improved to 3.69 per cent in Q1FY21 from 3.61 per cent in Q1FY20. However, sequentially, its NIM declined from 3.87 per cent in Q4FY20. The surplus liquidity and lower credit demand in the first quarter of current fiscal (Q1FY21) led to decline in NIM compared to Q4FY21, bank said in conference call with media.

The other income comprising fees, commissions etc rose from Rs 3,425.4 crore in Q1FY20 to Rs 6142.6 crore in Q1FY21.  The monetisation of stake in insurance subsidiaries provided gains of Rs 3,036 crore in the quarter.

The provisions (including for non performing assets) and contingencies more than doubled to Rs 7,593.9 crore in Q1FY21 from Rs 3,495.7 crore in Q1FY20. Bank made Covid-19 related provisions of Rs 5,550 crore in Q1FY21 with the objective of completely cushioning the balance sheet from the impact of pandemic, said its President Sandeep Batra in media interaction.  

The Provision Coverage Ratio (PCR) improved to 78.6 per cent in Q1FY21 from 74 per cent in Q1FY20. PCR was at 75.7 per cent in March 2020.

The asset quality profile of bank improved during the reporting quarter. The gross non-performing Assets (GNPAs) to 5.46 per cent in Q1FY21 from 6.49 per cent in Q1FY20. The GNPA were at 5.53 per cent at end of March 2020.

The net NPAs declined to 1.23 per cent in June 2020 from 1.77 per cent in June 2019. The Net NPAs were at 1.41 per cent in Mach 2020.

The total deposits increased by 21.3 per cent at Rs 8,01,622 crore and advances grew by 6.5 per cent Y-O-Y to reach Rs 6,31,215 crore as on June 30, 2020.
 

The loans under moratorium, a standstill on repayment under Covid-19 regulatory steps, declined to 17.5 per cent at end of June 2020 from 30 per cent in April 2020.

The Capital Adequacy Ratio (CAR) stood at 16 per cent as on June 30, 2020 with Tier I at 14.72 per cent. Bank is seeking shareholders approval to raise equity capital of Rs 15,000 crore to strengthen capital adequacy and improve competitive position to take benefit of growth opportunities, bank added.

Bank said it will dilute over four per cent stake in ICICI Securities, its listed capital market subsidiary, in the current financial year to comply with regulatory norms (of minimum public shareholding). Its stake was just over 79 per cent.