NEW DELHI: Beating street estimates, two of India’s private lenders - ICICI Bank and Kotak Mahindra Bank - reported robust numbers for the September-ended quarter (Q2FY23). However, Yes Bank, which is charting a comeback to the big league, reported a sharp dip in its quarterly profit due to legacy issues.
The better-than-expected performance of ICICI and Kotak is in line with good show put up by other leading lenders such as HDFC Bank, the SBI, Axis Bank and IndusInd Bank. ICICI Bank on Saturday reported a 37% year-on-year (YoY) growth in net profit to Rs 7,558 crore in Q2FY23 as against a net profit of Rs 5,511 crore reported in the year-ago period.
The bank’s net interest income (NII), interest earned less interest expended, grew by 26% YoY to Rs 14,787 crore in Q2FY23 from Rs 11,690 crore in Q2FY22. The net interest margin was 4.31% in Q2FY23 compared to 4% in the same quarter of FY22 and 4.01% in Q1FY23.
Its non-interest income, excluding treasury income, grew by 17% YoY to Rs 5,139 crore in Q2FY23 from Rs 4,400 crore in Q2FY22. The bank’s total advances rose by 23% YoY and 5% sequentially to Rs 938,563 crore for Q2. The retail loan portfolio grew by 25% YoY and 6% sequentially, and comprised 54% of the total loan portfolio.
Mumbai-headquartered Kotak Mahindra Bank’s PAT for Q2FY23 stood at Rs 2,581 crore, up 27% from Rs 2,032 crore in Q2FY22 and Rs 2,071 in Q1FY23. Its NII for Q2FY23 rose to Rs 5,099 crore, from Rs 4,021 crore in Q2FY22, up 27%. Net interest Margin (NIM) was 5.17% for Q2FY23, higher than ICICI Bank and HDFC Bank. The gross NPA ratio for the bank fell by 16 basis points sequentially to 2.08%. Similarly, net NPA improved to 0.55% as of September 30, 2022, compared with 0.62% as of June 30, 2022.
The other private lender, Yes Bank, reported a 32% dip in September quarter net profit at Rs 153 crore, as legacy bad assets come to haunt it, resulting in higher provisions. The bank, which had to undergo an unprecedented bailout because of the high quantum of bad loans and is now on the way to normalisation, had reported a post-tax profit of Rs 225 crore in the year-ago period. It's core net interest income jumped 31.7% to Rs 1,991 crore during the quarter on the back of 11% growth in loans and 0.4% expansion in net interest margin at 2.6%.
Numbers in line with other big lenders
The better-than-expected performance of ICICI Bank and Kotak Mahindra Bank is in line with a good show put up by other leading lenders such as HDFC Bank, State Bank of India, Axis Bank and IndusInd Bank