Reported By:| Edited By: |Source: |Updated: Jan 31, 2022, 06:51 PM IST
Mumbai: ICICI Bank, one of India’s leading private lenders, reported a 25% growth in profit after tax YoY to Rs. 6194 crore in Q3- 2022. The bank reported a 23% YoY jump in net interest income (NII) at Rs. 12,236 crore in Q3 2022 while net interest margin (NIM) grew to 3.94% from 3.67% a year ago.
Provisions (excluding provision for tax) for the quarter fell 27% YoY to Rs. 2,007 crore , the bank said in a filing to BSE. Provision coverage ratio stood at 79.9% as of December 31, 2021.
Sandeep Bakhshi, MD & CEO, ICICI Bank, on analyst call, said, “We aim to create holistic value propositions for our customers through our 360-degree customer-centric approach and focus on opportunities across client and segment ecosystems. Our cross-functional teams seek to tap into key customer and market segments, enabling 360-degree coverage of customers and increase in wallet share. We aim to steadily grow our business within our strategic framework and strengthen our franchise, delivery, and servicing capabilities, backed by a range of digital initiatives.”
Significant growth in loans and deposits:
The retail loan portfolio grew by 19% YoY and comprised 61.3% of the total loan portfolio at December 31, 2021. The business banking portfolio grew by 39% YoY at December 31, 2021. The SME portfolio grew by 34% YoY at December, 2021. The growth in the domestic wholesale banking portfolio was 13% YoY and 9% sequentially.
Within the retail loans’ portfolio, the mortgage loan grew by 23% YoY, personal loan grew by 22.8%, rural loans by 9.4%, and the auto loan portfolio by 12% YoY. Further, credit card portfolio grew at 32.1% YoY.
Total deposits increased by 16% YoY and 4% sequentially to Rs. 10,17,467 crore at December 31, 2021. Average current account deposits increased by 34% YoY. Average savings account deposits increased by 25% YoY. Total term deposits increased by 12% YoY to Rs. 536,811 crore at December 31, 2021
Digital initiatives:
“Our digital platforms are continuously evolving with the objective of creating end-to-end seamless digital journeys, offering personalised solutions and value-added features to customers and enabling more effective data-driven cross-sell and up-sell,” said Sandeep Bakhshi. “Our open architecture based mobile banking app, iMobile Pay, offers a wide variety of products, services and features and helps us to acquire new customers. The growth in our SME and business banking portfolios has been driven by our digital offerings and platforms like InstaBIZ and Merchant Stack.”
The value of mobile banking transactions increased 50% YoY to ₹ 4,55,326 crore (US$ 61.3 billion) in Q3. Digital channels like internet mobile banking, POS and other accounted for over 90% of the savings account transactions in 9M 2022. In December 2020, the Bank had expanded its mobile banking app, iMobile, to iMobile Pay which offers payment and banking services to customers of any bank. There have been 53 lakh activations from non ICICI Bank account holders as of end-December. The value of transactions by non-ICICI Bank account holders increased by 73% sequentially in Q3-2022.
The Bank is the market leader in electronic toll collection through FASTag, the Bank had a market share of 39% by value in electronic toll collection through FASTag in Q3 with a 42% YoY growth in collections.
The business banking and SME franchise continues to grow on the back of digital offerings and platforms like InstaBIZ. The value of financial transactions on InstaBIZ grew by about 68% YoY in Q3-2022. The Bank’s supply chain platforms enable corporates to seamlessly manage their supply chain financing and payments, collection and reconciliation requirements of their dealers and vendors in a convenient and paperless manner. The value of transactions through these supply chain platforms in Q3-2022 was 3.5 times the value of transactions in Q3-2021. The value of the Bank’s merchant acquiring transactions through Unified Payments Interface in Q3-2022 was 2.2 times the value of transactions in Q3-2021.
“Our solutions for corporates comprising our various modular platforms, and our extensive client coverage have supported the growth in our average current account deposits. Process decongestion across products and customer segments is a key element of our strategy,” said Sandeep Bakhshi.
The Bank had launched ICICI STACK for corporates and has created more than 20 industry specific STACKs which provide bespoke and purpose based digital solutions to corporate clients and their ecosystems. The volume of transactions through these solutions in Q3-2022 was 3.7 times the volume of transactions in Q3-2022. The value of transactions on the Bank’s Trade Online platform, which allows customers to carry out most of their trade finance and foreign exchange related transactions digitally, grew by about 90% YoY in Q3-2022.
Asset quality:
ICICI Bank’s asset quality improved further with increase recoveries and upgrades, and decline in NPA additions during the quarter. The net non-performing assets declined by 10% sequentially to Rs 7,344 crore at December 31, 2021 from Rs 8,161 crore at September 30, 2021. The net NPA ratio declined to 0.85% at December 31, 2021.
Way forward:
Sandeep Bakhshi said, “Looking ahead, we see many opportunities to grow our core operating profit in a risk-calibrated manner. We are reimagining customer journeys with personalised and omni-channel experiences. Our ecosystem-based approach helps our customers to manage their business across the value chain efficiently, and has created new opportunities for us across businesses. We are investing in analytics capabilities and technology to enhance our offerings to customers and to build a robust future-ready architecture.”
“We continue to be guided by the twin principles of ‘One Bank, One RoE’, emphasising the goal of maximizing our share of target market across all products and services and ‘Fair to Customer, Fair to Bank’, emphasising the need to deliver fair value to customers while creating value for shareholders.
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