ICICI Bank Q1 net profit up 52.3% at Rs4,747cr on 62% fall in provisions for loan losses

ICICI Bank Ltd reported 2.41% rise in total consolidated revenues in the Jun-21 quarter at Rs38,853cr

Jul 25, 2021 12:07 IST India Infoline News Service

ICICI Bank Ltd reported 2.41% rise in total consolidated revenues in the Jun-21 quarter at Rs38,853cr, but revenues were -10.93% lower on sequential basis compared to Mar-21 quarter largely due to the lag effect of the COVID impact. Retail banking and life insurance banking remained the key drivers of growth in top line in the Jun-21 quarter.

On a yoy basis, the retail banking revenues were 8.5% higher. However, revenues from treasury operations were -16.1% lower on yoy basis. The revenues from corporate banking were marginally lower on a yoy basis. Life insurance revenues of the ICICI Pru Life subsidiary was up over 25% on yoy basis while general insurance revenues were also higher by 20%.

Profit after tax (PAT) for the Jun-21 quarter was higher by 52.27% at Rs4,747cr due to loan provisions falling by 62% from Rs7,705cr to Rs2,939cr. In Q1 CASA deposits grew by 24% with CASA deposits now accounting for 44% of the deposit base. Net interest income or NII increased by 18% to Rs10,936cr in Q1 while the net interest margins or NIM was stable at 3.89%. PAT margins at 12.22%  in the Jun-21 quarter were higher than 8.22% in the Jun-20 quarter and 11.20% in the Mar-21 quarter.

Gross NPAs at 5.15%, are still high in absolute terms, but it is lower in yoy terms although sharply higher in sequential terms from just 4.96%. The ROA at 1.54% is among the best in the private banking industry while capital adequacy is comfortable. Overall, there is evidence of sequential stress on assets, but lower provisions indicate that most of the potential losses are already provided for.

Financial highlights for Jun-21 compared yoy and sequentially

Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income ₹ 38,853 ₹ 37,939 2.41% ₹ 43,621 -10.93%
Operating Profit ₹ 9,617 ₹ 12,292 -21.76% ₹ 9,933 -3.18%
Net Profit ₹ 4,747 ₹ 3,118 52.27% ₹ 4,886 -2.84%
Diluted EPS ₹ 6.72 ₹ 4.76 ₹ 6.93
Operating Margins 24.75% 32.40% 22.77%
Net Margins 12.22% 8.22% 11.20%
Gross NPA Ratio 5.15% 5.46% 4.96%
Net NPA Ratio 1.16% 1.23% 1.14%
Return on Assets 1.54% 0.95% 1.51%
Capital Adequacy 18.71% 16.00% 19.12%

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