NEW DELHI: ICICI Bank posted a strong 50% year-on-year growth in net profit (on standalone basis) to Rs 6,905 crore in the April-June quarter of 2022-23. During the same quarter in 2021-22, the bank had posted Rs 4,616 crore.
The growth in profit comes on the back of strong net interest income and lower provisions.
Net interest income (Interest income earned minus interest expended) of the bank increased by 21% year-on-year to Rs 13,210 crore in the first quarter of the current financial year compared to Rs 10,936 crore in the previous year.
Provisions during the quarter saw a 60% year-on-year decline to Rs 1,144 crore against Rs 2,852 crore during the same period the previous year.
Provisions are funds set aside by banks for potential non-recovery of loans given.
The core operating profit (profit before provisions and tax, excluding treasury income) of the bank increased by 19% year-on-year to Rs 10,273 crore in the April-June 2022 period from Rs 8,605 crore in the same period previous year.
The net interest margin, which is a measure of a bank’s profitability, improved from 3.9% in April-June of 2021 to 4.01% in April-June of 2022. The Net interest margin in the January-March 2022 period was also 4%.
The bank further improved its asset quality in the June 2022 quarter with the gross NPA ratio declining to 3.41% from 3.60% at 31 March 2022 and 5.15% as on 30 June 30 2021.
The net NPA ratio declined to 0.70% on 30 June 2022 from 0.76% on 31 March 2022 and 1.16% on 30 June 2021.
ICICI Bank posted a credit growth of 21% year-on-year and 4% sequentially to Rs 895,625 crore during the quarter.
The bank’s retail loan portfolio grew by 24% year-on-year and 5% sequentially. Retail loans account for 53% of the total loan portfolio of the bank as on June 30, 2022.
Deposits saw an increase of 13% year-on-year to Rs 1,050,349 crore during the quarter.