ICICI Bank reports 50% rise in net profit in Q1. | Techno Glob


Mumbai : ICICI Bank reported a standalone net profit on Saturday. 6,905 crore in the June quarter of ’23, up 50%. 4,616 crore in the same period last year due to higher net interest income (NII) and lower expenses.

its net interest income (NII); The difference between interest earned and expenses rose 21% year-on-year (yoy). 13,210 crore in Q1 of FY23. Net Interest Rate (NIM); A key measure of profitability; It expanded 1 basis point (bps) sequentially to 4.01%. On the other hand, the bank’s expenses fell to 60% yoy. 1,144 crore. It includes emergency provisions. 1050 crores.

“It’s a general provision and you see volatility in the market and it’s good to have a contingency,” Sandeep Batra, executive director at ICICI Bank, told reporters on a conference call after the results.

ICICI Bank’s provisioning ratio, a measure of funds set aside to cover bad loans, was 79.6% as on June 30 and 79.2% as on March 31. The private sector lender has improved asset quality as gross margin declined 19 bps to 3.41% sequentially and net NPA ratio at 0.7% at 0.7%, down 6 bps from the March quarter.

On a total basis, The bank saw a sharp decline from the March quarter. 5825 crores. this 5,037 crore is retail; Derived from rural and commercial banking portfolio. the remaining 788 crore came from corporate and small and medium enterprise customers. But on a net basis, the bank added bad loans. 382 crore as against a net decline 489 crore in the consecutive quarter.

“I’ve been saying this for a while now that for the retail portfolio, it’s the net additions that you should be looking at rather than the gross numbers. Because apart from the additions, there was an equal amount of deletions. Overall, the numbers are pretty healthy,” Batra said.

According to Anindya Banerjee, the bank’s Chief Financial Officer; In the first and third quarters of each financial year, Kisan Credit Card’s bad loan accrual is slightly higher when recognized on the basis of non-performing assets (NPAs). Payment and repayment cycle.

The bank’s domestic loan book grew by 22% yoy. 8.5 trillion; Retail loans grew by 24%. 4.8 trillion. Asked if he sees the bank sustaining this level of growth, which is higher than its peers, Batra said what kind of growth the bank is aiming for.

“Anything that fits our filters, we’re happy to grow that business. We don’t target specific growth,” he said.

ICICI Bank’s total deposits grew by 13.4% yoy. 10.5 trillion on June 30. The average current savings account (CASA) deposit ratio was 45.8%, up 210 bps from the same period last year.

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