ICICI Bank hits record high after robust Q2 performance

ICICI Bank jumped 8.08% to Rs 820.40 after the private sector lender reported a 29.6% rise in standalone net profit to Rs 5,510.95 crore on a 10% rise in total income to Rs 26,030 crore in Q2 FY22 over Q2 FY21.

The bank's profit before tax grew by 37% year-on-year to Rs 7,201 crore in Q2 FY22 from Rs 5,266 crore posted in Q2 FY21. The core operating profit (profit before provisions and tax, excluding treasury income) increased by 23% year-on-year to Rs 9,518 crore in Q2 FY22 as compared to Rs 7,719 crore posted in the same quarter last year.

Net interest income (NII), the difference between interest earned and interest expenses, surged by 25% year-on-year to Rs 11,690 crore in Q2 FY22 from Rs 9,366 crore registered in Q2 FY21. The net interest margin (NIM) improved to 4% in quarter ended 30 September 2021 from 3.89% reported in the quarter ended 30 June 2021.

Provisions (excluding provision for tax) reduced by 9% year-on-year to Rs 2,714 crore in Q2 FY22 from Rs 2,995 crore posted in Q2 FY21. Provision coverage ratio was 80.1% as of 30 September 2021. The bank's total capital adequacy at 30 September 2021 was 19.52% and tier-1 capital adequacy (including profits for H1-2022) was 18.53% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively.

On the asset quality front, the net non-performing assets declined by 12% sequentially to Rs 8,161 crore as of 30 September 2021 from Rs 9,306 crore reported on 30 June 2021. The net NPA ratio fell to 0.99% as of 30 September 2021 from 1.16% reported on 30 June 2021. Recoveries and upgrades of NPAs, excluding write-offs and sale, increased to Rs 5,482 crore in Q2 FY22 from Rs 3,627 crore posted in Q1 FY22. The gross NPAs written off were Rs 1,717 crore in Q2 FY22.

The private bank said it continues to hold Covid-19 provisions of Rs 6,425 crore (US$ 866 million) as of 30 September 2021, the same level as of 30 June 2021.

Total deposits increased by 17% year-on-year and 6% sequentially to Rs 977,449 as of 30 September 2021. Average current account deposits gained 36% year-on-year and 5% quarter on quarter in Q2 FY22.

Total advances rose by 17% year-on-year and 4% sequentially to Rs 764,937 as of 30 September 2021. The domestic advances grew by 19% year-on-year and 4% quarter on quarter as on 30 September 2021.The retail loan portfolio rose by 20% year-on-year and 5% quarter on quarter, and comprised 62.1% of the total loan portfolio as of 30 September 2021. The domestic advances grew by 19% year-on-year and 4% quarter on quarter in Q2 FY22.

Shares of ICICI Bank hit a record high of Rs 822 in early trade today. The stock has climbed 111% from its 52-week low of Rs 388.10 posted on 30 October 2020.

ICICI Bank is the second largest private sector bank in India. The bank had a network of 5,277 branches and 14,045 ATMs as of 30 September 2021.

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