Private lender
ICICI Bank stock zoomed by nearly 6% on Monday after touching an all-time high of Rs568.35 per piece on Sensex. Investors were optimistic on the bank after it reported a 19% growth in net profit to Rs4,940cr for the quarter ended December 2020 (Q3FY21) against a profit of Rs4,146cr a year ago same period.
At around 09.55 am, ICICI Bank was trading at Rs562.60 per piece up Rs25.60 or 4.77% on Sensex.
ICICI Bank's Net interest income (NII) increased by 16% year-on-year to Rs9,912cr in the quarter under review from Rs8,545cr in Q3FY20.
Key highlights of the Q3 results are:
The net interest margin was 3.67% in Q3-2021 compared to 3.57% in the quarter ended September 30, 2020 (Q2-2021) and 3.77% in Q3-2020.
Provisions (excluding provision for tax) were Rs2,742cr in Q3-2021 compared to Rs2,083cr in Q3- 2020. During Q3-2021, the Bank made contingency provision amounting to Rs3,012cr for borrower accounts not classified as non-performing according to the interim order of the Supreme Court. The Bank utilised Rs1,800cr of Covid-19 related provisions made in the earlier periods.
At December 31, 2020, the Bank held aggregate Covid-19 related provision of Rs9,984cr, including contingency provision for proforma NPAs amounting to Rs3,509cr for loans not classified as non-performing.
During the quarter, the gross additions to NPAs were Rs471cr. Recoveries and upgrades, excluding write-offs, from nonperforming loans were Rs1,776crs (US$ 243 million) in Q3-2021. The net NPA ratio was 0.63% on December 31, 2020. Loans amounting to Rs8,280cr (US$ 1.1 billion), compared to Rs1,410cr (US$ 193 million) at September 30, 2020, were not classified as non-performing at December 31, 2020, according to the Supreme Court’s interim order.
The retail loan portfolio grew by 15% year-on-year and 7% sequentially on December 31, 2020. Retail loans comprised 65.6% of the total loan portfolio at December 31, 2020. Including non-fund outstanding, retail was 54.1% of the total portfolio at December 31, 2020. Growth in the performing domestic corporate portfolio was about 10% year-on-year driven by disbursements to higher-rated corporates to meet their working capital and capital expenditure requirements.
Total deposits increased by 22% year-on-year to Rs874,348cr (US$ 119.7 billion) at December 31, 2020. Average current account deposits increased by 27% year-on-year in Q3-2021. Average savings account deposits increased by 16% year-on-year in Q3-2021.