ICICI Bank Q4 net up 59% on fall in provisions

ICICI Bank on Saturday reported a smart 59% year-on-year jump in net profits for the three months to March at Rs 7,019 crore, helped by a big 63% y-o-y fall in provisions.

The numbers were ahead of analysts’ estimates. With this, the private sector lender ends FY22 on a strong note, having posted a profit after tax of Rs 23,339 crore for the year, an increase of 44%.

The bank’s core operating profit (profit before provisions and tax, excluding treasury income) increased by a more modest 19% y-o-y to Rs 10,164 crore in Q4FY22. Excluding the dividends from subsidiaries and associates, the rise in the pre-provisioning profits was 21% y-o-y.

The lender’s profitability improved during the quarter and the net interest margin (nim) came in at 4% better than the 3.96% reported in the December 2021 quarter. On the back of a good growth in the domestic loan book of 17% y-o-y, the bank’s net interest income for the quarter was up a strong 21% y-o-y at Rs 12,605 crore.

The bank’s asset quality showed an improvement with the net NPA (non-performing assets) ratio declining to 0.76% at the end of March from 0.85% at the end of December 2021 and 1.14% in March 2021. The gross NPA stood at 3.60% in Q4FY22 versus 4.96% in Q4FY21 and 4.13% in Q3FY22. The provisions (excluding provision for tax) declined by 63% y–o-y to Rs 1,069 crore.

The provision coverage ratio on non-performing assets was 79.2% at March 31. The bank is well-capitalised with the total capital adequacy at the end of March at 19.16% and Tier-1 capital adequacy of 18.35%. ICICI Bank’s total deposits grew by 14% y-o-y to Rs 10,64,572 crore at the end of March and the average CASA ratio for Q4FY22 was 45%.

The value of mobile banking transactions increased by 30% y-o-y to Rs 477,228 crore during the March quarter. Digital channels including internet, mobile banking, PoS and others accounted for over 90% of the savings account transactions in FY2022.The value of credit card spends grew by 77% y-o-y.

ICICI Bank on Saturday received the board of directors’ approval for fundraising to the tune of `25,000 crore in the current financial year FY23 through the issuance of debt securities.

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