Today, Private sector lender ICICI Bank reported a 19.1% year-on-year growth in standalone profit for the quarter ended December 2020, profit stands at Rs 4,939.6 crore in comparison to Rs 4,146.5 crore in the same year ago period.
Net interest income surged by 16% to Rs 9,912.5 crore with 10% loan growth (YoY at Rs 6.99 lakh crore) and 10 bps contraction in net interest margin.
“The retail loan portfolio, which contributed 65.6% to total advances, grew by 15% year-on-year and 7% sequentially at December 2020,” said the bank, adding net interest margin at 3.67% in Q3FY21 contracted by 10 bps YoY but expanded by 10 bps sequentially.
ICICI Bank in its BSE filing said, “Total deposits in Q3FY21 grew by 22% YoY to Rs 8,74,348 crore, with 19% growth in average current and savings account (CASA) deposits, and 26% increase in term deposits YoY.”
“The continued pickup in economic activity and tailwinds from the festive season combined with the bank’s digital initiatives and extensive franchise reflected in an increase in disbursements across retail products during Q3FY21,” said the bank
According to the analysis poll conducted by CNBC-TV18, profit was estimated at Rs 4,269.4 crore and net interest income at Rs 9,505 crore for the December quarter but the actual numbers are above the estimation.
“Disbursements of auto loans continued to increase from the September levels and crossed pre-COVID levels in December. Credit card spends also reached pre-COVID levels in December led by increased spends in categories such as health & wellness, electronics and e-commerce,” the bank added.
On the asset quality front, gross non-performing assets (NPA) as a percentage of gross advances fell 79 bps sequentially to 4.38% and net NPAs declined 37 bps QoQ to 0.63% in Q3FY21.
“On a proforma basis, including loans not classified as non-performing pursuant to the Supreme Court’s interim order and contingency provisions for the same, the net NPA ratio would have been 1.26% in December quarter 2020, compared to 1.12% at September 2020,” said the bank.
Excluding proforma NPAs, “the total fund based outstanding to all borrowers under resolution was Rs 2,546 crore, or about 0.4% of the total loan portfolio, at December 2020,” said ICICI Bank.
“The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding non-performing assets and loans included in the proforma NPA disclosures) was Rs 18,061 crore at December 2020 compared to Rs 16,167 crore at September 2020,” the bank added.
At December 2020, the bank said it held aggregate COVID-19 related provision of Rs 9,984 crore, including contingency provision for proforma NPAs amounting to Rs 3,509 crore for loans not classified as non-performing pursuant to the Supreme Court’s interim order,” said the lender.
Pre-provision operating profit increased 16.8% year-on-year to Rs 8,819.8 crore in quarter ended December 2020. “The core operating profit (profit before provisions and tax, excluding treasury income) grew by 15% YoY to Rs 8,054 crore in Q3FY21,” said the bank.
Non-interest income or other income showed just 2.5% year-on-year growth at Rs 4,686.27 crore in October-December period of 2020, hit by muted growth in fee income.
Fee income at Rs 3,601 crore in Q3FY21 increased 0.1% compared to corresponding period but the same, the banks said, grew by 15% sequentially, reflecting the increase in customer spending, borrowing and investment activity.
Treasury income grew by 44.3% year-on-year to Rs 766 crore as the bank sold 2.2% shareholding in ICICI Securities for compliance with minimum public shareholding norms resulting in a gain of Rs 329 crore.
On the consolidated basis, its profit at Rs 5,498 crore in December quarter 2020 grew by 17.7% compared to the corresponding period and the consolidated return on equity was 14.6% in Q3FY21.