On Saturday, ICICI Bank announced the results for the April to June quarter, reporting a 40% increase in net profit, which increased to $9,648 crore from $6,904 crore in the similar quarter previous year. Net interest income (NII) for the ICICI Bank increased significantly in Q1 by 38% year over year, totaling 18,227 crore.
Also during the quarter, the net interest margin (NIM) was 4.78%, up from 4.01% in the first quarter of the previous fiscal year (FY23) and down slightly from 4.90% in the fourth quarter of FY23.
The ICICI Bank’s gross NPA ratio decreased from 2.81% in Q1FY23 to 2.76% in the quarter under review. On June 30, 2023, the net NPA ratio was 0.48%, down from 0.48% on March 31, 2023, and 0.70% on June 30, 2022. In comparison to Q4FY23, the net addition to gross NPAs, excluding write-offs and sales, was 1,807 crore in Q1FY24 as opposed to 14 crore.
Gross NPA additions increased from 4,297 crore in Q4FY23 to 5,318 crore in the quarter ending in June 2023.
In Q1FY24 compared to Q4FY23, recoveries and upgrades of NPAs, excluding write-offs and sales, were $3,511 crore versus $4,283 crore. Gross NPAs totaling $1,169 crore were written down by the ICICI Bank during the quarter from April to June.
The ICICI Bank is still holding 13,100 crore in contingency provisions for the April-June quarter. At the conclusion of the June quarter, there were 4,276 crores in loan and non-fund based outstanding to performing corporate and SME borrowers with credit ratings of BB and below, down from 4,704 crores on March 31, 2023.
At the conclusion of the quarter in June 2023, there were loans and non-fund based obligations totaling 4,276 crore rupees, including 727 crore to borrowers under resolution.
