ICICI Bank April-June Profit Up 15.5% To ₹127.68 Billion On Strong Other Income

ICICI Bank Ltd. posted a 15.5% rise in net profit to ₹127.68 billion for the April-June quarter, driven by a 22% increase in other income to ₹85.05 billion. Interest income under the ‘others’ category more than tripled on year to ₹9.24 billion, further supporting profitability. 

Sequentially, net profit rose just 1.1% as provisions more than doubled to ₹18.15 billion. On year, provisions were up 36.2%, and the bank continued to hold contingency provisions of ₹131 billion. Provision coverage ratio stood at 75.3%.

The bank’s Basel III capital adequacy ratio rose to 16.31% from 15.96% a year ago but dipped from 16.55% in the previous quarter. Gross non-performing assets ratio stayed flat at 1.67% from the March quarter and improved from 2.15% a year ago. 

Net NPA ratio improved to 0.41% from 0.43% a year ago but rose slightly from 0.39% last quarter. Gross NPA additions in the June quarter stood at ₹62.45 billion, while recoveries and upgrades were ₹32.11 billion. The bank wrote off ₹23.59 billion worth of bad loans during the quarter.

Net interest income rose 10.6% on year to ₹216.35 billion. However, net interest margin narrowed to 4.34% from 4.41% in the March quarter and 4.36% a year ago. 

Non-interest income rose 13.7% to ₹72.64 billion, with fee income growing 7.5% to ₹59 billion. Treasury gains nearly doubled to ₹12.41 billion. Total income rose nearly 12% on year to ₹514.52 billion and was up 3.5% sequentially.

Total deposits increased 12.8% on year to ₹16.09 trillion, while advances rose 11.5% to ₹13.64 trillion. The CASA ratio stood at 41.2% as of Jun. 30. The cost of deposits fell to 4.85% from 5.00% in the March quarter. Cost of funds eased to 5.02% from 5.18%.

Cost-to-income ratio improved to 37.8% from 39.7% a year ago. Yield on advances declined to 9.53% from 9.86%.
Within the loan book, business banking advances rose nearly 30% on year to ₹2.73 trillion. Retail loans, which made up 52.2% of the loan book, rose 7% to ₹7.21 trillion. 

Rural loans fell 0.4% to ₹771.51 billion, while loans to domestic corporate and others rose 7.5% to ₹2.76 trillion. The credit card portfolio grew 1.5% to ₹542.55 billion and personal loans rose 1.4% to ₹1.2 trillion.