Private sector lender ICICI Bank on January 30 reported a 19.1 percent year-on-year growth in standalone profit for the quarter ended December 2020, driven by operating income and NII.
Profit increased to Rs 4,939.6 crore in Q3FY21, rising from Rs 4,146.5 crore in the corresponding period last fiscal.
Net interest income, the difference between interest earned and interest expended, rose by 16 percent to Rs 9,912.5 crore compared with same period last year, with 10 percent loan growth (YoY at Rs 6.99 lakh crore) and 10 bps contraction in net interest margin.
"The retail loan portfolio, which contributed 65.6 percent to total advances, grew by 15 percent year-on-year and 7 percent sequentially at December 2020," said the bank, adding net interest margin at 3.67 percent in Q3FY21 contracted by 10 bps YoY but expanded by 10 bps sequentially.
"Total deposits in Q3FY21 grew by 22 percent YoY to Rs 8,74,348 crore, with 19 percent growth in average current and savings account (CASA) deposits, and 26 percent increase in term deposits YoY," ICICI Bank said in its BSE filing.
Numbers were ahead of analyst estimates. Profit was estimated at Rs 4,269.4 crore and net interest income at Rs 9,505 crore for the December quarter, as per the average of estimates of analysts polled by CNBC-TV18.
"The continued pickup in economic activity and tailwinds from the festive season combined with the bank's digital initiatives and extensive franchise reflected in an increase in disbursements across retail products during Q3FY21," said the bank.
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"Disbursements of auto loans continued to increase from the September levels and crossed pre-COVID levels in December. Credit card spends also reached pre-COVID levels in December led by increased spends in categories such as health & wellness, electronics and e-commerce," the bank added.
On the asset quality front, gross non-performing assets (NPA) as a percentage of gross advances fell 79 bps sequentially to 4.38 percent and net NPAs declined 37 bps QoQ to 0.63 percent in Q3FY21.
"On a proforma basis, including loans not classified as non-performing pursuant to the Supreme Court's interim order and contingency provisions for the same, the net NPA ratio would have been 1.26 percent in December quarter 2020, compared to 1.12 percent at September 2020," said the bank.
Excluding proforma NPAs, "the total fund based outstanding to all borrowers under resolution was Rs 2,546 crore, or about 0.4 percent of the total loan portfolio, at December 2020," said ICICI Bank.
"The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding non-performing assets and loans included in the proforma NPA disclosures) was Rs 18,061 crore at December 2020 compared to Rs 16,167 crore at September 2020," the bank added.
Provisions and contingencies at Rs 2,741.72 crore for the December quarter last calendar year have grown considerably by 31.6 percent, but sequentially the same declined 8.5 percent.
During Q3FY21, the bank made contingency provision amounting
to Rs 3,012 crore for borrower accounts not classified as non-performing pursuant to the interim order of the Supreme Court. The bank utilised Rs 1,800 crore of COVID-19 related provisions made in the earlier periods.
At December 2020, the bank said it held aggregate COVID-19 related provision of Rs 9,984 crore, including contingency provision for proforma NPAs amounting to Rs 3,509 crore for loans not classified as non-performing pursuant to the Supreme Court’s interim order," said the lender.
Pre-provision operating profit increased 16.8 percent year-on-year to Rs 8,819.8 crore in quarter ended December 2020. "The core operating profit (profit before provisions and tax, excluding treasury income) grew by 15 percent YoY to Rs 8,054 crore in Q3FY21," said the bank.
Non-interest income or other income showed just 2.5 percent year-on-year growth at Rs 4,686.27 crore in October-December period of 2020, hit by muted growth in fee income.
Fee income at Rs 3,601 crore in Q3FY21 increased 0.1 percent compared to corresponding period but the same, the banks said, grew by 15 percent sequentially, reflecting the increase in customer spending, borrowing and investment activity.
Treasury income grew by 44.3 percent year-on-year to Rs 766 crore as the bank sold 2.2 percent shareholding in ICICI Securities for compliance with minimum public shareholding norms resulting in a gain of Rs 329 crore.
On the consolidated basis, its profit at Rs 5,498 crore in December quarter 2020 grew by 17.7 percent compared to the corresponding period and the consolidated return on equity was 14.6 percent in Q3FY21.
Consolidated assets grew by 16 percent year-on-year to Rs 15,19,353 crore in the quarter ended December 2020, said the bank.
ICICI Bank had a network of 5,267 branches and 14,655 ATMs at the end of December 2020.