ICICI Bank jumped 4.97% to Rs 598.40 after the bank reported strong earnings for the quarter and the year ended on 31 March 2021.
The private lender reported net profit of Rs 4,403 crore in Q4-2021, up 260.61% compared with net profit of Rs 1,221 crore in Q4-2020. Total income during the quarter increased by 2.2% year-on-year (YoY) to Rs 23,953.02 crore.
Net interest income (NII) increased by 17% YoY to Rs 10,431 crore in Q4-2021 from Rs 8,927 crore in Q4-2020. The net interest margin was at 3.84% as on 31 March 2021 as against 3.87% as on 31 March 2020.
Non-interest income, excluding treasury income, was Rs 4,137 crore in Q4-2021, up 3.09% over Rs 4,013 crore in Q4-2020. The bank's fee income rose 6% year-on-year to Rs 3,815 crore in Q4-2021 from Rs 3,598 crore in Q4-2020. Retail fees accounted for 77% of total fees, the bank said.
The core operating profit (profit before provisions and tax, excluding treasury income) increased by 20% YoY to Rs 8,565 crore in Q4 FY21 from Rs 7,148 crore in Q4 FY20.
The bank incurred a treasury loss of Rs 25 crore in Q4-2021 compared to profit of Rs 242 crore in Q4-2020. The treasury loss in Q4-2021 reflects the increase in yields on fixed income and government securities.
Provisions (excluding provision for tax) were Rs 2,883 crore in Q4-2021 compared to Rs 5,967 crore in Q4-2020. Provision coverage ratio was 77.7% at 31 March 2021.
During Q4-2021, the bank utilised contingency provision amounting to Rs 3,509 crore towards proforma NPAs as of 31 December 2020, as these loans have now been classified as per the RBI guidelines. Further, the bank made additional COVID-19 related provisions of Rs 1,000 crore during Q4-2021. As at 31 March 2021, the bank held COVID-19 related provision of Rs 7,475 crore.
The profit before tax was Rs 5,657 crore in the fourth quarter compared with Rs 1,423 crore in the same period last year.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 41,373.42 crore as on 31 March 2021 as against Rs 34,860.43 crore as on 31 December 2020 and Rs 41,409.16 crore as on 31 March 2021.
The gross NPA ratio declined to 4.96% as on 31 March 2021 from 5.42% (on a proforma basis) as on 31 December 2020 and 5.53% as on 31 March 2020.
The net NPA ratio declined to 1.14% as on 31 March 2021 from 1.26% (on a proforma basis) as on 31 December 2020 and 1.41% as on 31 March 2020.
ICICI Bank said that the retail loan portfolio grew by 20% year-on-year and 7% sequentially at 31 March 2021. Retail loans comprised 67% of the total loan portfolio at 31 March 2021.
The credit card spends in Q4-2021 increased substantially over Q3-2021 driven by spends across electronics, wellness and jewellery categories.
Total deposits increased by 21% YoY to Rs 932,522 crore while total advances rose 14% to Rs 733,729 crore as at 31 March 2021.
On a standalone basis, the profit after tax grew by 104% to Rs 16,193 crore in FY21 from Rs 7,931 crore in FY20. Total income increased by 7.5% YoY to Rs 98,086.80 crore in FY21 over FY20.
The bank's total capital adequacy as at 31 March 2021 was 19.12% and Tier-1 capital adequacy was 18.06% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively.
The board has recommended a dividend of Rs 2 per share.
ICICI Bank had a network of 5,266 branches and 14,136 ATMs at 31 March 2021.
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