On October 22, ICICI Bank, the country’s second-largest private sector lender, announced a huge 37 percent gain in standalone profit and a 26.5 percent increase in net interest income in Q2, with a significant fall in bad loan provisions.
According to a BSE report, the bank’s standalone profit jumped to Rs 7,557.84 crore for the quarter, up from Rs 5,511 crore in the same period last year.
The bank also noted that its net interest income increased to Rs 14,787 crore during the quarter, up from Rs 11,690 crore in the same period last fiscal, with net interest margin expanding by around 30 basis points sequentially and on a year-on-year basis.
“Overall loan portfolio growth was 23% year on year, with domestic loan portfolio growth at 24%,” ICICI Bank said, adding that total period-end deposits climbed by 12% year on year to Rs 10.9 lakh crore in September FY23, with a CASA ratio of 45 percent.
The retail loan portfolio increased by 25% year on year, accounting for 54% of total loan book growth, while the business banking portfolio increased by 44% year on year.
Despite a treasury loss of Rs 85 crore (against a gain of Rs 397 crore YoY), non-interest revenue (other income) climbed by 5.4 percent year on year to Rs 5,055 crore in the second quarter and was supported by fee income, which increased by 18 percent year on year to Rs 4,480 crore.
According to the bank, pre-provision operating profit improved by 18% year on year to Rs 11,680 crore, while provisions and contingencies reduced by 39% year on year to Rs 1,644.5 crore but jumped dramatically by 44% sequentially.
For the quarter, ICICI Bank reported an improvement in asset quality, with gross non-performing assets as a proportion of gross loans falling 22 basis points QoQ to 3.19 percent, and net non-performing assets falling 9 basis points sequentially to 0.61 percent.
About NPA
“Net additions to gross NPAs were Rs 605 crore for the quarter ended September FY23, compared to Rs 382 crore in the June FY23 quarter,” the bank said, adding that NPA recoveries and upgrades, excluding write-offs and sales, were Rs 3,761 crore for the period, down from Rs 5,443 crore in Q1FY23.
The bank wrote off gross NPAs totaling Rs 1,103 crore during the quarter. Loan and non-fund based outstanding to performing borrowers with ratings of BB and lower declined to Rs 7,638 crore in the fiscal quarter ended September FY23, down from Rs 8,209 crore the previous quarter.
More Earning Figures
Consolidated earnings increased 31% year on year to Rs 8,007 crore in Q2FY23, while assets increased 14% to Rs 18.33 lakh crore. In Q2FY23, the bank’s overall capital adequacy ratio was 18.27%, while its Tier-1 capital adequacy ratio was 17.51%, both of which were higher than the legal minimums of 11.70% and 9.70%, respectively. These data include profits over the preceding six months (H1-2023).
In the first half of 2023, ICICI Prudential Life Insurance (ICICI Life) boosted its Value of New Business (VNB) by 25% year on year to 1,092 crores. Between FY2022 and H1 2023, the VNB margin grew from 28.0% to 31.0%. Year on year, the annualized premium equivalent climbed by 10% to 3,519 crores in H1-2023. Profit after tax declined from 445 crores to 199 crores in Q2-2023 when compared to Q2-2022.
ICICI Lombard General Insurance Company (ICICI GeneralGross )’s Direct Premium Income (GDPI) increased 17% year on year to 5,185 crores in Q2 2023 from 4,424 crores in Q2 2022. The combined ratio was 105.1% in Q2-2023, compared to 105.3% in Q2-2022. The profit after tax of ICICI General climbed by 32%, from 447 crores in Q2 2022 to 591 crores in Q2 2023.
ICICI Prudential Asset Management Company’s profit after tax increased by 6% year on year to 406 crores in Q2-2023, from 383 crores in Q2-2022. On a consolidated basis, ICICI Securities’ profit after tax dropped from 351 crores in Q2-2022 to 300 crores in Q2-2023.
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