New Delhi, July 26 Shares of ICICI Bank on Monday gained over 1 per cent and touched 52-week high on the bourses after the company's June quarter net profit zoomed 52 per cent. The stock rose by 1.29 per cent to ₹685.40 -- its 52-week high -- on the BSE. At the NSE, it gained 1.30 per cent to ₹685.45 -- its 52-week high.
Profits driven by lower provisions
ICICI Bank's June quarter net profit zoomed 52 per cent to ₹4,747.42 crore, driven majorly by lower provisions but reported an increase in stress from the retail loans segment.
On a standalone basis, the second-largest private sector lender by assets posted a net profit of ₹4,616.02 crore for the reporting quarter, up by 77 per cent when compared with the national lockdown-hit April-June period of FY21. The earnings were announced on Saturday.
The gross NPAs came at 5.15 per cent against 4.96 per cent in the quarter-ago period and 5.46 per cent in the year-ago period.
The provision line saw some activity in the reporting quarter, including a change in accounting norms to be more conservative which led to ₹1,127 crore additional impact and a write-back of ₹1,050 crore from Covid provisions as the bank grew more confident of the overall asset quality situation exiting the quarter with a ₹6,425 crore buffer.
The overall provisions came at ₹2,852 crore, nearly a third of the ₹7,594 crore set aside for the year-ago period despite an increase in the gross non-performing assets (NPA) ratio.