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| Edited By: |Source: |Updated: May 05, 2022, 12:23 AM IST
Mumbai: ICICI Bank, a private sector lender, reported profit after tax of Rs 7,019 crore for the quarter ended March 2022 , a 59% growth over the year-ago period. The Bank’s net interest income registered a 21 per cent year-on-year rise to Rs. 12,605 crore in the Jan-Mar quarter from Rs. 10,431 crore a year ago. In FY22, ICICI Bank's standalone net profit grew 44 per cent year-on-year to Rs. 23,339 crore .
Sandeep Batra, Executive Director, ICICI Bank addressing the media post announcing the quarter numbers said, “We aim to grow the core operating profit within the guardrails of compliance and risk through our 360-degree customer centric approach and focus on opportunities across client and segment ecosystems. We focus on growing our loan portfolio in a granular manner with a focus on risk and reward, with return of capital and containment of provisions below a defined percentage of core operating profit being a key imperative.”
Asset Quality:
Provisions of the lender dropped 63 per cent year-on-year to Rs. 1,069 crore in the Jan-March quarter. The bank has made contingency provision of Rs. 1,025 crore in the quarter, thereby taking the Covid-19 related contingency provision to Rs. 7,450 crore at March 31, 2022.
Asset quality of the lender improved in the reporting quarter, with gross non-performing asset (GNPA) ratio falling by 53 bps sequentially to 3.6 per cent. Net NPA ratio declined by 9 bps to 0.76 per cent.
The GNPA additions were Rs. 4,204 crore in Q4FY22 compared to Rs. 4,018 crore in Q3FY22. Recoveries and upgrades of NPAs, excluding write-offs and sale increased to Rs. 4,693 crore in Q4FY22 from Rs. 4,209 crore in Q3FY22. The GNPA written-off in Q4FY22 were Rs. 2,644 crore.
Loans and Deposits:
As on March 31, ICICI Bank’s total advances registered a growth of 17 per cent year-on-year to Rs 859,020 crore. Retail loans grew by 20 per cent YoY, which formed 53 per cent of the loan book of the bank.
The business banking portfolio grew by 43 per cent YoY. The SME business, comprising borrowers with a turnover of less than Rs. 250 crore, grew by 34 per cent YoY and 11 per cent sequentially and wholesale advances grew 10 per cent YoY. Growth in the domestic wholesale banking portfolio was 10 per cent year-on-year at March 31, 2022
As on March 31, ICICI Bank’s total deposits grew 14 per cent year-on-year to Rs 1,064,572 crore. Average current account savings account deposits increased 23 per cent on-year in January-March.
Total term deposits increased by 9 per cent year-on-year to Rs 546,135 crore at March 31, 2022.
“We continue to remain optimistic about the resilience and growth prospects of the Indian economy and see many opportunities to grow our core operating profit in a risk-calibrated manner”, said Sandeep Batra. “We will continue to focus on our objective of catering to all the banking and financial needs of the customer with a focus on risk and reward” added Sandeep Batra.
Digital Initiatives:
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 63 lakh activations of iMobile Pay from non-ICICI Bank account holders as of end-March 2022. The value of transactions by non-ICICI Bank account holders in Q4-2022 was 4.9 times the value of transactions in Q3-2022.
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 44 per cent year-on-year in Q4-2022.
The Bank is the market leader in electronic toll collections through FASTag. The bank had a market share of about 33% by value in electronic toll collections through FASTag in Q4-2022, with a 27% year-on-year growth in collections.
The value of mobile banking transactions increased by 30% year-on-year to Rs. 477,228 crore in Q4-2022. Digital channels like internet, mobile banking, PoS and others accounted for over 90% of the savings account transactions in FY2022.
“We at ICICI Bank have 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 FY2022 was 2.9 times the volume of transactions in FY2021”, said Sandeep Batra.
Dividend on equity shares
The Board has recommended a dividend of Rs. 5 per share in line with applicable guidelines. The declaration of dividend is subject to requisite approvals.
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