ICICI Bank fell 2.52% to Rs 329.25 after the private lender's provisions jumped in Q4 March 2020.
ICICI Bank on Saturday (9 May 2020) said its net profit rose 26.04% to Rs 1,221.36 crore on 12.09% rise in total income to Rs 23,443.66 crore in Q4 March 2020 over Q4 March 2019.
Profit before tax stood at Rs 1422.65 crore in Q4 FY20, up by 81.92% from Rs 781.98 crore in Q4 FY19. Net interest income (NII) increased by 17% year-on-year to Rs 8,927 crore in Q4 FY20 from Rs 7,620 crore in Q4 FY19. The net interest margin was at 3.87% as on 31 March 2020 as compared to 3.72% as on 31 March 2019.
Provisions and contingencies rose 9.46% to Rs 5,967.44 crore in Q4 March 2020 from Rs 5,451.41 crore in Q4 March 2019. The bank's provisions jumped 186.45% in Q4 from Rs 2,083.20 crore in Q3 December 2019.
At 31 March 2020, the bank made Covid-19 related provision of Rs 2,725 crore. Provisions (excluding Covid-19 related provisions and provision for tax) were Rs 3,242 crore in Q4 FY20.
The provision coverage ratio on non-performing loans, including cumulative technical write-offs, was 86.8% at 31 March 2020 compared to 80.7% at 31 March 2019.
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Addressing the media at a concall after the announcement of results, ICICI Bank president Sandeep Batra said that banks exposure with respect to a healthcare group based in West Asia and an oil trading company based in Singapore have been classified as non-performing and substantially provided for in this quarter.
The bank's gross non-performing assets (NPAs) stood at Rs 41,409.16 crore as on 31 March 2020 as against Rs 43,453.86 crore as on 31 December 2019 and Rs 46,291.63 crore as on 31 March 2019.
The ratio of gross NPAs to gross advances stood at 5.53% as on 31 March 2020 as against 5.95% as on 31 December 2019 and 6.70% as on 31 March 2019. The ratio of net NPAs to net advances stood at 1.41% as on 31 March 2020 as against 1.49% as on 31 December 2019 and 2.06% as on 31 March 2019.
The private lender's net profit rose 135.80% to Rs 7930.81 crore on 17.11% rise in total income to Rs 91,246.94 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 14,048.04 crore in FY20, up by 271.96% from Rs 3,776.76 crore in FY19.
Total advances increased by 10% to Rs 6,45,290 crore as at 31 March 2020 from Rs 5,86,647 crore as at 31 March 2019. The bank reported a 16% year-on-year growth in the retail loan portfolio at 31 March 2020. Including non-fund outstanding, retail was 53.3% of the total portfolio at 31 March 2020.
Total deposits increased by 18% to Rs 7,70,969 crore in FY20 from Rs 6,52,920 crore in FY19. The average CASA ratio was 42.3% in Q4 March 2020 compared to 42.8% in Q3 December 2020 and 44.6% in Q4 March 2019. The period-end CASA ratio was 45.1% at 31 March 2020 compared to 47.0% at 31 December 2019 and 49.6% at 31 March 2019.
The lender said in its notes to accounts that the domestic economy would be impacted by the Covid-19 pandemic with contraction in industrial and services output across small and large businesses. The bank's business is expected to be impacted by lower lending opportunities and revenues in the short to medium term.
ICICI Bank is one of India's leading private banks having a banking network of 5,324 branches and 15,688 ATMs as on 31 March 2020.
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