ICICI Bank rose 5.26% to Rs 413.20 after the private bank reported a 549% jump in net profit to Rs 4,251.33 crore on 3.9% rise in total income to Rs 23,650.77 crore in Q2 September 2020 over Q2 September 2019.
The bank's core operating profit (profit before provisions and tax, excluding treasury income) increased by 18% year-on-year (YoY) to Rs 7,719 crore in Q2 September 2020 from Rs 6,533 crore Q2 September 2019.Profit before tax in Q2 September 2020 stood at Rs 5265 crore, up by 20.6% from Rs 4,367.23 crore in Q2 September 2019. Tax expense during the quarter fell by 72.67% to Rs 1,014 crore in Q2 September 2020 over Q2 September 2019.
The bank's provisions and contingencies increased by 19.5% to Rs 2,996.27 crore in Q2 FY21 from Rs 2,506.87 crore in Q2 FY20. This includes provision of Rs 497 crore made on a prudent basis on loans aggregating to Rs 1,410 crore that were not classified as non-performing pursuant to the Supreme Court's interim order. As of 30 September 2020, the bank held Covid-19 related provision of Rs 8,772 crore.
Gross non-performing assets (NPAs) stood at Rs 38,989.19 crore as on 30 September 2020 as against Rs 40,386.24 crore as on 30 June 2020 and Rs 45,638.79 crore as on 30 September 2019.
The ratio of gross NPAs to gross advances stood at 5.17% as on 30 September 2020 as against 5.46% as on 30 June 2020 and 6.37% as on 30 September 2019. The ratio of net NPAs to net advances stood at 1% as on 30 September 2020 as against 1.23% as on 30 June 2020 and 1.6% as on 30 September 2019.
The provision coverage ratio increased to 81.5% in Q2 September 2020 from 78.6% in Q1 June 2020. The bank's total capital adequacy at 30 September 2020, including profits for H1-2021, was 19.33% and Tier-1 capital adequacy was 17.89% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively. During the quarter, the bank raised equity capital of Rs 15,000 crore.
Net interest income (NII) increased by 16% year-on-year to Rs 9,366 crore in Q2FY21 from Rs 8,057 crore in Q2FY20. The net interest margin was 3.57% in Q2FY21 compared to 3.69% in the quarter ended 30 June 2020 (Q1FY21) and 3.64% in Q2FY20, reflecting surplus liquidity with the bank.
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ICICI Bank in press release said: "Post the easing of restrictions, there has been a substantial month-on-month increase in disbursements across retail products. Mortgage disbursements during Q2 September 2020 crossed Pre-Covid levels and reached an all-time monthly high in September 2020. Auto loan disbursements have continued to increase from June 2020 and have reached pre-Covid levels in September 2020 reflecting the rise in passenger car sales. Disbursements across the rural portfolio have crossed pre-Covid levels in the months of August and September 2020. Credit card spends recovered to about 85% of pre-Covid levels in September 2020 led by increased spends in categories such as health & wellness, electronics and e-commerce."
Total deposits increased by 20% year-on-year to Rs 832,936crore at 30 September 2020. The bank reported 17% growth in average current and savings account (CASA) deposits in Q2FY21. Average CASA ratio was 40.3% in Q2FY21.
Total advances increased by 6% year-on-year to Rs 652,608 crore at 30 September 2020 from Rs 613,359 crore at 30 September 2019. The retail loan portfolio grew by 13% year-on-year and 6% sequentially at 30 September 2020. Retail loans comprised 65.8% of the total loan portfolio at 30 September 2020.
ICICI Bank is one of India's leading private banks. The Bank has a network of 5,288 branches and 15,158 ATMs on 30 September 2020.
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