icici bank: ICICI Bank beats estimates; Fourth quarter profit up nearly 60%

Mumbai: Private sector lender ICICI Bank beat profit estimates by reporting a nearly 60% rise in March quarter net profit on the back of loan growth and lower provisions. Net profit rose to Rs 7,019 crore from Rs 4,403 crore a year ago. Analysts polled by Bloomberg had estimated a profit of Rs 6,402.5 crores. “We have focused on a risk-calibrated approach,” said Sandeep Batra, chief executive of ICICI Bank. “Wherever we see risks, we exercise restraint and if we see opportunities we are happy to fund as long as they respect our safeguards. ”

Net interest income increased by 21% from last year to Rs 12,605 crore from Rs 10,431 crore. The net interest margin increased by 4%. The gross non-performing assets (NPA) ratio was 3.60%, down 136 basis points from the same period last year. The net NPA ratio fell from 1.14% to 0.76%. Additions to gross NPAs amounted to Rs 4,204 crore while recoveries, upgrades and sale of bad debts reached Rs 4,693 crore. The bank also wrote off bad debts worth Rs 2,644 crore.

Provisions decreased by 63% to Rs 1,069 crore at the end of the quarter from Rs 2,883 crore a year ago. They included a contingency reserve of Rs 1,025 crore made on a prudent basis. “There’s a bit of uncertainty right now,” Batra said. “We will do an assessment (to hold any provisions) every quarter as we move forward.”

The bank also recorded strong credit growth, with domestic advances increasing by 17% year-on-year to Rs 8.59 lakh crore. The retail loan portfolio, excluding rural loans, increased by 20% and represented 52.8% of the total loan portfolio.

The corporate banking portfolio grew by 43% and that of small and medium enterprises (SMEs), comprising borrowers with turnover of less than Rs 250 crore, grew by 34% year-on-year. ‘other. The growth of the wholesale banking portfolio in Canada was 10%. “ICICI Bank again delivered a strong performance, aided by a high-yielding portfolio and well supported by a low-cost liability franchise, resulting in healthy 21% year-over-year growth in the NII,” Binod said. Modi, Portfolio Manager, PMS, Sharekhan of BNP Paribas. .

“NIM at 4% and ROA at 2.11% were quite encouraging. Additionally, continued improvement in asset quality with sustained improvement in recoveries and upgrades bodes well for the stock.

The bank has informed the exchanges that chief executive Vishakha Mulye has resigned to pursue career opportunities outside the bank. With his departure, Chief Financial Officer Rakesh Jha has been appointed Executive Director and will handle the retail book, while Anup Bagchi will handle the wholesale business. Anindya Banerjee has been appointed Group Chief Financial Officer.

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