ICICI Bank, the country's second largest private sector lender, on October 22 registered a massive 37 percent year-on-year growth in standalone profit and a 26.5 percent rise in net interest income, with a significant fall in bad loan provisions.
The standalone profit jumped to Rs 7,557.84 crore for the quarter, rising from Rs 5,511 crore in the same period last year, the bank said in its BSE filing.
The bank further said its net interest income during the quarter increased to Rs 14,787 crore, compared to Rs 11,690 crore in the corresponding period last fiscal, with net interest margin expanding around 30 bps on sequential as well as on-year basis.
"Overall loan portfolio grew by 23 percent year-on-year, with domestic loan portfolio growth at 24 percent," ICICI Bank said, adding total period-end deposits grew by 12 percent year-on-year to Rs 10.9 lakh crore in September FY23, with average current account and savings account (CASA) ratio of 45 percent in the same period.
The bank has registered a 25 percent YoY growth in the retail loan portfolio contributing 54 percent to the total loan book, and 44 percent growth YoY in the business banking portfolio.
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Non-interest income (other income) grew by 5.4 percent year-on-year to Rs 5,055 crore during the quarter hit by a treasury loss of Rs 85 crore (against a gain of Rs 397 crore YoY), but supported by fee income that increased by 18 percent YoY to Rs 4,480 crore in Q2FY23.
Pre-provision operating profit at Rs 11,680 crore for the quarter increased by 18 percent YoY, the bank said, adding the provisions and contingencies declined by 39 percent YoY to Rs 1,644.5 crore but increased sharply by 44 percent on a sequential basis.
ICICI Bank has reported an improvement in asset quality for the quarter with gross non-performing assets as a percentage of gross advances falling 22 bps QoQ to 3.19 percent, and net NPA dropped 9 bps sequentially to 0.61 percent.
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"There were net additions of Rs 605 crore to gross NPAs for the quarter ended September FY23, against Rs 382 crore in June FY23 quarter," the bank said, adding the recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,761 crore for the quarter against Rs 5,443 crore in Q1FY23.
The bank said it has written off gross NPAs of Rs 1,103 crore during the quarter.
The loan and non-fund based outstanding to performing borrowers rated BB and below reduced to Rs 7,638 crore in the quarter ended September FY23, down from Rs 8,209 crore in the previous quarter.
The bank said its consolidated profit increased by 31 percent YoY to Rs 8,007 crore in Q2FY23 and assets grew by 14 percent to Rs 18.33 lakh crore in the same period.
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