ICICI Bank on May 9 has reported strong numbers in the quarter ended March 2020, however the numbers missed the analysts estimates due to higher COVID-19 related provisions.
The board has not recommended any dividend for FY2020 as per RBI direction to banks.
Here are key takeaways from earnings:
The bank has reported a 26 percent year-on-year growth in standalone profit at Rs 1,221.36 crore in quarter ended March 2020 against profit of at Rs 969.06 crore.
Pre-provision operating profit
The core operating profit increased by 18% year-on-year to Rs 7,148 crore in Q42020 from Rs 6,077 crore, YoY, while excluding interest on income tax refund, core operating profit grew by 26% year-on-year in Q42020.
Net Interest Income and Net Interest Margin:
Net interest income of the bank rose 17.1 percent year-on-year to Rs 8,926.89 crore with 10 percent loan growth and 18 percent increase in deposits YoY. The net interest margin was at 3.87% in Q42020 versus 3.77% in Q32020) and 3.72% in Q42019.
The bank's board approved fund raising by way of issuances of debt securities including by way of Non-Convertible Debentures in domestic markets upto an overall limit of Rs 250 billion by way of private placement & issuances of bonds/notes/ offshore Certificate of Deposits in overseas markets upto USD 3 billion in single/multiple tranches.
Non-interest income (other income) in Q4FY20 increased 17.5 percent to Rs 4,255 crore YoY with fee income growth of 13 percent and treasury income rising 55 percent.
The gross non-performing assets fell 42 basis points sequentially to 5.53 percent and net NPAs dropped 8 basis points to 1.41 percent in quarter ended March 2020.
Provisions (excluding Covid-19 related provisions and provision for tax) were Rs 3,242 crore, while Covid-19 related provisions of Rs 2,725 crore in Q42020 against standard assets to further strengthen the balance sheet
Treasury income grew by 55% year-on-year to Rs 242 crore in March quarter from Rs 156 crore in the same period last year.
The banks total deposits rose by 18% year-on-year to Rs 770,969 crore in March quarter. The average current account deposits increased by 15% and average savings account deposits increased by 11% year-on-year in Q42020.
The domestic loan growth stood at 13% year-on-year at March 31, 2020 driven by retail, which grew by 16% year-on-year.