ICICI Bank Ltd, India’s second-largest private bank, reported on Saturday that its fourth-quarter independent net income rose 59% to ₹7,019 billion from 4,403 crore in the same period last year, helped by an improvement in net interest income and a reduction in provisions for bad loans .
For the full year, profit after tax grew 44% to ₹23,339 billion from 16,193 crore a year earlier, the bank said in a filing.
“We remain bullish on growth and will focus on risk-adjusted growth,” said Sandeep Batra, Executive Director of ICICI Bank. “We made additional provisions during the quarter given the uncertain environment,” he added.
During the quarter, core operating profit (profit before provisions and taxes, excluding income from Treasury) increased 19% year-on-year to ₹10,164 crore. Excluding dividend income from subsidiaries/affiliates, core operating income increased 21% in the January-March quarter of the most recent fiscal year.
Net Interest Income (NII) for the fourth quarter increased 21% yoy to ₹12,605 crore. Net interest margin was 4.0% in Q4FY22 compared to 3.84% in the same period last year.
Noninterest income, excluding Treasury income, increased 11% year-on-year to ₹4,608 billion.
Fee income increased 14% to ₹4,366 crore in Q4 FY22.
The retail loan portfolio, excluding rural loans, grew 20% year-on-year and represented 52.8% of the total loan portfolio as of March 31, 2022.
Including outstanding non-fund loans, the retail loan portfolio represented 43.8% of the total portfolio as of March 31.
The business customer portfolio grew by 43% year-on-year as of March 31, 2022.
The SME business, which includes borrowers with a turnover of less than £250m, grew 34%, the bank said.
Domestic wholesale banking portfolio growth was 10% yoy as of March 31.
Domestic prepayments grew 17% year over year. Total advances increased 17% year-on-year to ₹8.59,020 billion as of March 31. Total deposits increased by 14% to ₹10,64,572 crore as of March 31, 2022.
Provisions (excluding tax provisions) decreased 63% year-on-year to ₹1,069 crore in the fourth quarter.
Net non-performing assets decreased 24% year-on-year and 5% sequentially to ₹6,961 crore at 31 March.
The Net NPA Ratio decreased from 0.85% as of December 31, 2021 and 1.14% as of March 31, 2021 to 0.76% as of March 31, 2022.
Net eliminations from gross NPAs, excluding write-downs and sales, were £4.89 billion in Q4 2022 compared to £1.91 billion in Q3 2022.
Gross NPA inflows were £4,204 billion in Q4 2022 compared to £4,018 billion in Q3 2022.
Recoveries and upgrades of NPAs, excluding write-downs and sales, rose to £4,693m in the fourth quarter, from £4,209m in the third quarter, the bank said.
Gross NPAs written off in Q4 2022 were £2,644 billion. The reserve coverage ratio for NPAs as of March 31 was 79.2%.
In addition, as of March 31, 2022, the Bank continues to maintain COVID-19-related provisions of ₹6,425 billion as pension provisions.
Accordingly, as at 31 March 2022 the Bank held total reserves of ₹7,450 crore.
The Board of Directors has proposed a dividend of ₹5 per share.
“ICICI Bank again reported strong performance, supported by a high-yield portfolio and well supported by a low-cost casualty business, resulting in healthy NII growth of 21% yoy,” said Binod Modi, Portfolio Manager, PMS, Sharekhan at BNP Paribas .
“Additionally, continued improvement in asset quality with continued improvement in recoveries and upgrades bodes well for the stock,” he added.
