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This is an archive article published on April 23, 2022
ICICI Bank Q4 net rises 59.4%; NPAs ease, loan book expands
According to ICICI Bank, net interest income (NII) increased 21 per cent from Rs 10,431 crore a year ago to Rs 12,605 crore in Q4 of FY 2022. The net interest margin was 4 per cent as compared to 3.84 per cent last year.
The bank ended the FY22 with a 44% growth in the bottomline at Rs 23,339 crore (Representational)
Beating market estimates, private sector lender ICICI Bank on Saturday reported a 59.4 per cent year-on-year jump in net profit to Rs 7,018.7 crore for the quarter ended March 2022, as against Rs 4,402.61 crore in the same period a year ago.
Higher net interest income and improved asset quality boosted the bank’s bottom line.
The bank’s board has also approved a dividend of Rs 5 per share for the shareholders.
According to ICICI Bank, net interest income (NII) increased 21 per cent from Rs 10,431 crore a year ago to Rs 12,605 crore in Q4 of FY 2022. The net interest margin was 4 per cent as compared to 3.84 per cent last year.
Gross non-performing assets (NPAs) fell to Rs 33,919 crore (3.60 per cent of advances) as of March 2022 as against Rs 41,373 crore (4.96 per cent) a year ago.
The bank said recoveries and upgrades of NPAs, excluding write-offs and sale, increased to Rs 4,693 crore in Q4FY22 from Rs 4,209 crore in Q3 of 2022.
Gross NPAs written-off in the fourth quarter were Rs 2,644 crore and the provision coverage ratio on NPAs was 79.2 per cent as of March 31, 2022.
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On a standalone basis, the bank’s profit after tax (PAT) grew by 44 per cent year-on-year to Rs 23,339 crore in FY2022 from Rs 16,193 crore in the fiscal ended March 31, 2021.
Explained
Factors that drove profit
A multitude of factors — improving asset quality, falling in provisioning, rise in interest income — led to the private bank posting a near 60 per cent rise in Q4 net profit. For FY22, profit after tax rose 44 per cent.
The retail loan portfolio, excluding rural loans, grew by 20 per cent year-on-year and 6 per cent sequentially, and comprised 52.8 per cent of the total loan portfolio as of March 2022.
Including non-fund outstanding, the retail loan portfolio was 43.8 per cent of the bank’s overall portfolio.
The business banking portfolio grew by 43 per cent year-on-year and 10 per cent sequentially, and the small and medium enterprise (SME) business — comprising borrowers with a turnover of less than Rs 250 crore — grew by 34 per cent year-on-year and 11 per cent sequentially at March 31, 2022.
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Growth in the domestic wholesale banking portfolio was 10 per cent year-on-year.
Including the Covid-19 related contingency provision of Rs 6,425 crore, the bank held total contingency provisions of Rs 7,450 crore as of March 31, 2022.
Meanwhile, as per a PTI report, ICICI Bank approved the appointment of Rakesh Jha as a wholetime director (designated as Executive Director) subject to regulatory approvals for a period of five years effective from May 1, 2022 or the date of approval of his appointment by RBI, it said.
The Board also took on record the resignation of Vishakha Mulye, Executive Director with effect from May 31, 2022, the report added.
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