Private lender, ICICI Bank on October 23 said that it restructured loans worth Rs 4,158 crore under the second resolution framework. Personal loans accounted highest under the second restructuring framework at Rs 3,029.94 crore, the bank said in an exchange filing.
Business loans worth Rs 442.85 crore and small business loans worth Rs 685.41 crore were restructured in the second resolution framework.
The total restructuring portfolio stands at Rs 9,684 crore which is about 1.3 percent of total advances.
Under the first resolution framework Rs 60 crore had slipped into NPAs out of over Rs 3,737 crore under restructuring framework which had majority corporate restructuring.
Total outstanding to all borrowers under resolution framework was Rs 4,864 crore which is about 0.7 percent of total loan book as on June 30, 2021 compared to Rs 3,927 crore at March 31, 2021, the bank said.
The bank's net profit increased in September quarter by 29.6 percent and stood at Rs 5,510 crore as compared with Rs 4,251 crore a year ago.
The bank’s net interest income increased by 24.8 percent over last year to Rs 11,689.7 crore.
The total deposits of the bank increased by 17 percent on yearly basis and 6 percent sequentially at Rs 9.77 lakh crore.
Asset Quality
The bank said its asset quality improved during the quarter with gross non-performing asset ratio decreased to 4.82 percent in September quarter as compared to 5.15 percent as of June quarter.
The net NPA was under 0.99 percent for September quarter as compared to 1.16 percent in June quarter. This is the lowest net NPA in the last six years for the bank and the net NPA addition in the second quarter was at Rs 96 crore.
The bank said the recoveries in the second quarter equalled the gross addition.
The gross NPA additions have been at Rs 5,578 crore during current quarter out of which Rs 4,600 crore were retail and Rs 950 crore on corporate, said Sandeep Batra, Executive Director, ICICI Bank in a media call.
Against these additions the bank had a recovery of Rs 5,482 crore and most of it was from retail segment and a small proportion from corporate segment, Batra added.
The bank wrote of Rs 1,700 crore which lead to a drop in its net NPA amount which reduced to Rs 41,000 crore from Rs 43,000 crore in June quarter.
Advances
The bank’s advances grew by 19 percent on yearly basis and 4 percent sequentially and the total advances stood at Rs 7.64 lakh crore. The retail book grew by 20 percent on yearly basis and 5 percent sequentially.
Business banking advances grew 43 percent on yearly basis and 12 percent sequentially.
Sandeep Batra said the bank has adopted a risk calibrated approach and have put risk filters, if customers in any segment pass the filters we service them.
He added, retail is only 52 percent of our overall book and we have a diversified book and will grow in risk calibrated fashion.
The mortgage book of the bank has grown by 25 percent on yearly basis, vehicle loans grew by 6 percent and MSME & personal loans around 16 percent, Batra added.
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