ICICI Bank Q3 Results: October-December Net Profit Jumps 19% To ₹ 4,940 Crore

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ICICI Bank Limited reported a 19 per cent growth in net profit to ₹ 4,940 crore for the October-December quarter in the current financial year, as compared to ₹ 4,146 crore in the year-ago period. The private sector lender reported growth in domestic and retail loans amid strong credit demand in the third quarter. ICICI Bank posted a net profit of ₹ 4,251 crore in the second quarter of the current financial year.

  1. ICICI Bank’s core operating profit – the profit before provisions and taxes, grew by 15 per cent year-on-year to ₹ 8,054 crore in the third quarter of the financial year.
  2. The private lender’s net interest income (NII) – or the difference between interest earned and interest paid, in the third quarter grew 16 per cent on year to ₹ 9,912 crore
  3. The net interest margin, key measure profitability, was 3.67 per cent in the December quarter as compared to 3.57 per cent in the second quarter of the financial year
  4. The net non-performing asset (NPA) ratio was 0.63 per cent in the October-December quarter. The bank said that, not accounting for the Supreme Court’s order on recognition of bad loans, the net NPA ratio would have been at 1.26 per cent, instead of 1.12 per cent in the previous quarter of the financial year
  5. ICICI Bank said that by the end of the third quarter, it held COVID-19 related provisions worth ₹ 9,984 crore, including contingency provision for proforma NPAs amounting to ₹ 3,509 crore, amid the Supreme Court’s interim order.
  6. The bank’s total deposits grew 22 per cent year-on-year to ₹ 874,348 crore. Domestic loans grew 13 per cent, while retail loans grew 15 per cent, year-on-year
  7. The bank said that continued pickup in economic activity and tailwinds from the festive season, along with the digital initiatives reflected in an increase in disbursements across retail products during the third quarter
  8. The provisions were at ₹ 2,742 crore in the October-December quarter, as compared to ₹ 2,083 crore in the year-ago period
  9. During the quarter, the gross additions to NPAs were Rs 471 crore, as well as recoveries and upgrades, excluding write-offs, from non-performing loans were ₹ 1,776 crore
  10. At 4:00 pm, on Friday, January 29, shares of ICICI Bank settled 1.68 per cent higher at ₹ 537.00 apiece on the BSE.