ICICI Bank Ltd. reported that its first quarter standalone net profit grew 39.7% to ₹9,648 crore from ₹6,905 crore in the year-ago period, primarily supported by a 38% rise in Net Interest Income (NII) during the quarter ended June 30, 2023.
NII increased to ₹18,227 crore from ₹13,210 crore a year ago. The net interest margin was 4.78% in Q1-2024 compared with 4.01% a year ago, the private sector lender said in a filing.
The bank made provisions (excluding provision for tax) of ₹1,292 crore for bad loans compared with ₹ 1,144 crore a year ago.
The net domestic advances during the quarter grew by 20.6% year-on-year (YoY).
The retail loan portfolio grew by 21.9% YoY, and comprised 54.3% of the total loan portfolio. Including non-fund outstanding, the retail portfolio was 45.9% of the total portfolio at June 30, 2023, Sandeep Batra, Executive Director, ICICI Bank said over a conference call.
He said the business banking portfolio grew by 30.4% YoY and the SME business, comprising borrowers with a turnover of less than ₹250 crore grew by 28.5% YoY.
The rural portfolio grew by 17.6% YoY and the domestic corporate portfolio grew by 19.3% YoY, he said.
“We would like to keep growing in a risk calibrated manner,” Mr. Batra said.
The bank’s total advances increased by 18.1% YoY to ₹ 10,57,583 crore at June 30, 2023. The bank’s gross NPA ratio was lower at 2.76% at June 30, 2023 compared with 3.41% a year ago. The net NPA ratio was down at 0.48% as compared with 0.70% a year ago.
The net addition to gross NPAs, excluding write-offs and sale, was ₹1,807 crore in Q1-2024 compared to ₹14 crore in the previous quarter, the bank said in a press release.
The gross NPA addition was ₹5,318 crore in the latest quarter as compared with ₹4,297 crore in the previous quarter.
Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹3,511 crore in Q1-2024 compared to ₹4,283 crore in Q4-2023, the bank said.
Mr. Batra said the bank has written off gross NPAs amounting to ₹1,169 crore in Q1. The provision coverage ratio on NPAs was 82.4% at June 30, 2023, he said.
Bulk of the NPAs for the quarter were from corporate borrowers and Kisan Credit Card holders.
Excluding NPAs, the total fund-based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹3,946 crore or 0.4% of total advances at June 30, 2023 from ₹4,508 crore at March 31, 2023.
The bank, he said, holds provisions amounting to ₹1,224 crore against these borrowers under resolution. In addition, the bank continues to hold contingency provisions of ₹13,100 crore as of June 30, 2023.
The loan and non-fund based outstanding of ₹4,276 crore as of June 30, 2023 included ₹727 crore to borrowers under resolution.
Including profits for Q1, the bank’s total capital adequacy ratio at June 30, 2023 was 17.47% and Tier-1 capital adequacy was 16.76% as against the minimum regulatory requirements of 11.70% and 9.70% respectively.
The bank reported consolidated profit after tax of ₹10,636 crore, up 44% from the year-ago period. Consolidated assets grew by 17.0% YoY to ₹ 2,039,897 crore.