ICICI Bank FY20 results: Profit jumps 135% to Rs 7,931 crore; asset quality improves

Private lender ICICI Bank on Saturday reported a sharp 135 per cent year-on-year (YoY) growth in its net profit at Rs 7,931 crore for the financial year ended March 31, 2020, driven by rise in other income, operating income, NII and lower tax cost.

The Mumbai-headquartered bank had posted net profit of Rs 3,363 crore in the financial year 2018-19, ICICI Bank said in a filing to the Bombay Stock Exchange.

For the full year FY20, the bank's net interest income, the difference between interest earned and interest expended, surges by 23.14 per cent to Rs 33,267 crore versus Rs 27,015 crore in the previous fiscal. Non-interest income rose to Rs 15,156 crore as compared to Rs 13,146 crore in FY19.

For the fourth quarter ended March 31, 2020, ICICI Bank reported a 26 per cent rise in net profit at Rs 1,221 crore compared to Rs 969 crore a year ago, due to higher COVID-19 related provisions. The lender had made COVID-19 related provision of around Rs 2, 725 crore against standard assets to strengthen balance sheet.

Excluding COVID-19 related provisions, the profit after tax would have been Rs 3,260 crore in Q4 FY20, the bank said.

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During January-March quarter of FY20, net interest income increased by 17 per cent year-on-year to Rs 8,927 crore in Q4 FY20 from Rs 7,620 crore in Q4 FY19. Excluding the interest on income tax refund, NII grew by 24 per cent YoY in Q4 FY20.

The net interest margin was 3.87 per cent compared to 3.77 per cent in the quarter ended December 31, 2019 (Q3 FY20) and 3.72 per cent in Q4 FY19.

Non-interest income, excluding treasury income, increased by 16 per cent to Rs 4,013 crore as against Rs 3,465 crore in the year ago period.

Provisions and contingencies rose 9.5 per cent year-on-year to Rs 5,967.44 crore in Q4 FY19.

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On the asset front, ICICI Bank's asset quality improved during FY20, with gross non-performing assets (NPAs) ratio declining to 5.53 per cent versus 6.70 per cent in the year-ago period. Net NPA stood at 1.41 per cent as compared to 2.06 per cent in FY19.

During the March quarter, the gross additions to NPAs were Rs 5,306 crore, while Net NPA reduced by 26 per cent from Rs 13,577 crore (at March 31, 2019) to Rs 10,114 crore at March 31, 2020.

The ICICI Bank's board has not recommended any dividend for financial year 2019-20. "In line with the Reserve Bank of India's circular issued on April 17, the board has not recommended any dividend for FY20," the lender said in the exchange filing.

ICICI Bank's board also approved fund raising by way of issuances of debt securities including by way of Non-Convertible Debentures in domestic markets upto an overall limit of Rs 25,000 crore by way of private placement.

The board also approved issuances of bonds/notes/ offshore Certificate of Deposits in overseas markets upto USD 3 billion in single or multiple tranches for a period of one year from the date of passing of resolution by the board.