Private sector lender ICICI Bank’s net profit (on a standalone basis), rose almost six imes to Rs 4,251.3 crore in quarter ended September 2020 (Q2FY21) on account of growth in net interest income (NII) and low tax burden.
It had posted a net profit of Rs 654.9 crore in July-September 2019 (Q2FY20).
The bank's NII grew 16 per cent to Rs 9,366 crore in Q2FY21 from Rs 8,057 crore. However, the Net Interest Margin (NIM) saw a dip to 3.57 per cent in Q2FY21 as against 3.64 per cent in Q2FY20. Sequentially, NIM was at 3.69 per cent in Q1Fy20. The decline in NIMs shows impact of the surplus liquidity that bank carries on book, Bank said.
The other income declined to Rs 4,028.3 crore in Q2FY21 from Rs 4,194.22 crore in a year ago quarter.
ICICI Bank stock had closed lower by 1.84 per cent at Rs 392.55 per share on BSE on Friday.
Its provisions for tax fell sharply from Rs 3,712 crore in Q2Fy20 to Rs 1,015 crore in Q2Fy20.
The provisions and contingencies were up marginally Rs 2,995.2 crore in Q2FY21 from Rs 2,506.8 crore in Q2FY20. The lender set aside Rs 497.3 crore as contingency provision for borrower accounts, which were not classified as non-performing pursuant to the interim order of the Supreme Court. The total Covid-19 related provisions to Rs 8,772.3 crore at end of September 2020.
The provision coverage ratio (PCR) stood at 81.5 per cent in September 2020 from 76.1 per cent a year ago. The PCR was 78.6 per cent in Q1Fy21.
The bank's gross non-performing assets (NPAs) declined to 5.17 per cent in September 2020 from 6.37 per cent in September 2019. The net NPAs declined to 1.0 per cent from 1.6 per cent.
ICICI Bank’s advances rose six per cent to Rs 6,52,608 crore in September 2020. The deposits were up 20 per cent in 12 months to Rs 8,32,936 crore in September 2020.
Overall capital adequacy ratio (CAR) was at 18.47 per cent at the end of Q2FY21. ICICI Bank strengthened capital position by raising Rs 15,000 crore in equity in the quarter ended September, 2020.
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