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ICICI Bank Q2 net profit grows six-fold, NII rises by 16 pc

ICICI Bank Q2 net profit grows six-fold, NII rises by 16 pc

| @indiablooms | 02 Nov 2020, 02:30 pm

Mumbai/IBNS: Private sector lender ICICI Bank on Saturday posted a net profit of Rs 4,251.3 crore for the July-September quarter, marking a six-fold increase compared to the year-ago period.

ICICI Bank had posted a net profit of Rs 654.96 crore in the quarter ended September 30, 2019.

Total income rose to Rs 23,650.77 crore in the Q2FY21, from Rs 22,759.52 crore in the same period last year.

Net interest income (NII), which reflects the difference between the interest income from loans given and the interest paid to depositors, during the quarter was up 16.2 per cent at Rs 9,366.1 crore from Rs 8,057.4 crore, year on year (YoY).

The bank's net interest margin - a key indicator of profitability - stood at 3.57 per cent in the quarter ended September 30, lower than 3.69 per cent in the Q1FY21 quarter and 3.64 per cent in the same period in financial year 2019-20.

Its asset quality improved with net non-performing assets dipping below 1 per cent of gross advances compared to 1.60 per cent in the year-ago quarter and  1.23 per cent in June quarter

Gross non-performing assets (NPA) for the quarter stood at 5.2 percent compared to 5.46 per cent for the June quarter. It was 6.37 per cent in the year-ago quarter.

The bank said GNPA would have been 5.36 per cent if the SC instructions were not in place.

During the second quarter of this fiscal, the bank's total deposits increased by 20 per cent compared to the same period last year.

The private sector lender's core operating profit which is the profit earned before provisions and taxes, rose by 18 per cent year-on-year to Rs 7,719 crore in Q2FY21.

ICICI Bank said its domestic loans increased by 10 per cent year-on-year (Y-o-Y) and 4 per cent quarter on quarter (QoQ), while retail loans grew by 13 per cent  YoY and 6 percent QoQ.

The bank also said its disbursements across rural portfolios recovered in the second quarter to the pre-Covid levels.

It registered a 20 per cent increase in deposits YoY to Rs 832,936 crore, whereas  average current and savings account (CASA) deposits in Q22021 grew by 17 per cent.

The average CASA ratio was 40.3 percent in the quarter ended September 30.

The bank's term deposits grew by 26 per cent YoY as on September 30, 2020.

In the second quarter, the provisions stood at Rs 2,995.3 crore compared to Rs 7,594 crore in the first quarter of this fiscal and Rs 2,506.9 crore in the second quarter of last fiscal.

Additionally, the bank set aside Rs 8,772 crore for provisioning for Covid-19  on September 30, 2020.

The provision coverage ratio rose to 81.5 percent on September 30 from 78.6 percent on June 30.

ICICI Bank's board passed the proposal to seek the Reserve Bank of India's approval  for the reappointment of Sandeep Bakhshi as the managing director & CEO of the bank for a two year period, from October 15, 2021 to October 3, 2023.

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