ICICI Bank Q4 net profit rises more than 260% to Rs4,403 crore
26 April 2021
Private sector lender ICICI Bank has reported a net profit of Rs4,402.61 crore for the fiscal fourth quarter ended 31 March 2021 - a 260.47 per cent increase from the Rs1,221.4 crore net profit reported in the corresponding period of the previous fiscal.
Total advances by the bank during the quarter grew 13.71 per cent year-on-year to Rs7,34,000 crore while deposits rose 20.95 per cent to Rs9,33,000 crore.
Net interest income (NII), which is the difference between interest earned and interest expended, grew 16.85 per cent YoY to Rs10,431.13 crore for the quarter ended 31 March 2021 from Rs8,926.89 crore in the same quarter of the previous financial year.
"Growth in the performing domestic corporate portfolio was about 13 per cent year-on-year driven by disbursements to higher rated corporates and public sector undertakings (PSUs) across various sectors to meet their working capital and capital expenditure requirements," said the bank, adding deposits at the end of March 2021 grew by 21 per cent year-on-year to Rs9,30,000 crore.
Provisions were down 51.68 per cent at Rs2,883.47 crore during the January-March 2021 quarter against Rs5,967.44 crore in the corresponding quarter last year.
Gross non-performing assets (NPAs) as a percentage of total loans were lower at 4.96 per cent compared to 5.53 per cent a year ago, but higher compared to 4.38 per cent in the previous quarter ended December 2020.
Net NPAs were lower at 1.14 per cent against 1.41 per cent in the same quarter of the previous fiscal, but higher compared to 0.63 per cent in the previous quarter.
During Q4 of FY21, ICICI Bank said it utilised contingency provision amounting to Rs3,509 crore towards proforma NPAs as of December 2020, as these loans have now been classified as per the RBI guidelines.
"Further, the bank made additional Covid-19 related provisions of Rs1,000 crore during March quarter of FY21, and as of March 2021, the bank held Covid-19-related provision of Rs7,475 crore," the bank added.
"Excluding NPAs, the total fund based outstanding to all borrowers was Rs3,927 crore, or about 0.5 per cent of the total loan portfolio, at March 2021. The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding fund and non-fund based outstanding to NPAs) was Rs13,098 crore at March 2021 compared to Rs13,654 crore at December 2020," the bank added.
Recoveries and upgrades, excluding recoveries from proforma NPAs, write-offs and sale, from non-performing loans were Rs2,560 crore in the quarter ended March 2021, said the bank.
"There has been a bit of a slowdown in the current quarter because of second wave, but we have strengthened our balance sheet, platforms, with portfolio quality among the best in class," the bank’s management stated at a press conference.
The management further said the bank has written off Rs2,700 crore of loans in Q4 of FY21 against Rs5,400 crore in Q4 of FY20. "About Rs4,000 crore of slippages came from retail in Q4 and the rest from corporate & SME," the bank added.
Non-interest income fell 3.38 per cent to Rs4,111.35 crore for the March 2021 quarter from Rs4,254.98 crore in the year-ago quarter.