ICICI Bank net profit jumps 78% to Rs 4,616 cr in Apr-Jun

ICICI Bank on Saturday reported a 78 per cent year-on-year (YoY) rise in net profit at Rs 4,616 crore for April-June quarter, primarily on a sharp reduction in provisions. The bank had reported a net profit of Rs 4,403 crore in the preceding March quarter.

Net interest income (NII) increased 18 per cent YoY to Rs 10,936 crore during the quarter, while net interest margin (NIM) expanded to 3.89 per cent from 3.69 per cent in the year-ago quarter and 3.84 per cent in March quarter this year.

The bank's provisions stood at Rs 2,852 crore in June quarter as against Rs 7,594 crore in the corresponding quarter a year ago.

"During Q1-2022, the bank has changed its policy on non-performing loans to make it more conservative. The change in policy resulted in higher provision on non-performing advances amounting to Rs 1,127 crore for aligning provisions on outstanding loans to the revised policy," ICICI Bank said in a release.

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The bank's retail loan portfolio grew 20 per cent during June quarter, comprising 61.4 per cent of the total loan portfolio as of June 30, 2021.

"Retail disbursements moderated in April and May due to the containment measures in place across various parts of the country. With the gradual easing of restrictions, disbursements picked up in June and July. Credit card spends declined in April and May and increased to March levels in June...," the release said.

Current and savings account (CASA) deposits grew 24 per cent YoY during the quarter, while average CASA ratio was at 44 per cent.

On asset quality front, net non-performing assets (NPA) ratio was at 1.16 per cent as of June 30, 2021 as compared to 1.14 per cent on March 31, 2021. In absolute terms, net NPA stood at Rs 9,306 crore at the end of June 2021 as against Rs 9,180 crore on March 31, 2021.