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Thursday, December 02, 2021

Strong credit growth, easing NPAs propel ICICI Bank Q2 profit by 30%

Net interest income (NII) increased by 25 per cent year-on-year to Rs 11,690 crore in the second quarter from Rs 9,366 crore in the year-ago period

By: ENS Economic Bureau | New Delhi |
Updated: October 24, 2021 1:28:49 am
Income was up at Rs 26,031 crore from Rs 23,651 crore. (Representational Image)

Aided by strong loan growth and lower provisioning, ICICI Bank on Saturday posted a 30 per cent rise in standalone net profit at Rs 5,511 crore in the second quarter ended September of FY22 as against a profit of Rs 4,251 crore in the same quarter last year.

Net interest income (NII) increased by 25 per cent year-on-year to Rs 11,690 crore in the second quarter from Rs 9,366 crore in the year-ago period. The bank’s net interest margin rose to 4.00 per cent from 3.89 per cent in the quarter ended June and 3.57 per cent in the second quarter of FY21.

The net addition to gross non-performing assets (NPAs) declined by Rs 96 crore to Rs 41,437 crore in the quarter under review from Rs 38,989 crore. Gross NPA additions fell to Rs 5,578 crore from Rs 7,231 crore.

Recoveries and upgrades of NPAs, excluding write-offs and sales, increased to Rs 5,482 crore in the latest quarter from 3,627 crores in Q1-2022. The gross NPAs written off were Rs 1,717 crore. “With the increase in economic activity, disbursements across all retail products increased sequentially in Q2-2022,” ICICI Bank said.

Mortgage disbursements were close to the level seen in the quarter ended March 2021 (Q4-2021), reflecting the increase in demand coupled with the bank’s seamless customer onboarding experience through pre-approved offers and digitisation, it added.

Disbursements of personal loans and auto loans were close to March 2021 levels. The value of credit card spends grew 47.0 per cent sequentially in September 2022. Spends across most categories other than travel crossed March 2021 levels in September. “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,” it said.

The retail loan portfolio grew by 20 per cent year-on-year and 5 per cent sequentially, and comprised 62.1 per cent of the total loan portfolio at September 2021. Including non-fund outstanding, the retail loan portfolio was 51.6 per cent of the total portfolio in September 2021.

The bank continues to hold Covid-19 provisions of Rs 6,425 crore as of September 2021, the same level as of June 2021.

As of the September quarter, total assets under various resolution schemes were Rs 9,684 crore, or 1.3 per cent of total advances, as against Rs 4,864 crore at the end of the June quarter. The bank has restructured loans worth Rs 4,158 crore under the second Covid-19 restructuring programme.

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