Private sector lender ICICI Bank has posted a 158 per cent jump in net profit to Rs 4,146 crore for the December quarter of 2019-20, as against Rs 1,605 crore in the year-ago period. The jump was mainly due to one-time gain from Essar Steel resolution, which led to lower provisions.
While the bank saw bad loan recoveries and upgrades worth Rs 4,088 crore during the third quarter, provisions declined 51 per cent to Rs 2,083 crore during the quarter as against Rs 4,244 crore during the same period last year.
During the quarter, gross additions to NPAs were Rs 4,363 crore. Net non-performing assets (NPAs) decreased 36 per cent from Rs 16,252 crore for December 2018 to Rs 10,389 crore by December 2019. The net NPA ratio decreased from 2.58 per cent to 1.49 per cent as of December 2019. The provision coverage on non-performing loans, excluding cumulative technical write-offs, increased from 68.4 per cent at December 31, 2018 to 76.2 per cent as of December 2019.
As of December 2019, the fund-based and non-fund based outstanding to borrowers rated BB and below (excluding nonperforming assets) was Rs 17,403 crore, compared to Rs 17,525 crore on March 31, 2019 and Rs 16,074 crore in September 2019. The bank has classified an exposure to a telco as below investment grade, which led to the increase in the overall BB and below book to Rs 17,403 crore after two consecutive quarters of reduction.
Its core net interest income grew 24 per cent to Rs 8,545 crore on a 16 per cent domestic advances growth and a 0.37 per cent expansion in net interest margin to 3.77 per cent. Other income growth was 18.77 per cent to Rs 4,043 crore, with the core fee income increasing 17 per cent, the bank said.
Net interest margin was at 3.77 per cent in Q3. Fee income grew by 17 per cent, it said.
As per the bank, the year-on-year growth in domestic advances was 16 per cent as of December 2019. “The bank has continued to leverage its strong retail franchise, resulting in a 19 per cent year-on-year growth in the retail loan portfolio as of December 2019,” it said.
Including non-fund outstanding, retail was 52 per cent of the total portfolio as of December 2019. Growth in the performing domestic corporate portfolio was about 12 per cent year-on-year. Total advances increased by 13 per cent year-on-year to Rs 635,654 crore from Rs 564,308 crore a year ago.
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