Net income jumped 78% due to shrinking bad credit buffers

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ICICI Bank reported a 78 percent increase in net income after tax for the quarter ended June 30, 2021, compared to the same period last year, which rose to Rs 4,616, up from Rs 2,599 crore in the corresponding quarter of the last fiscal year.

Net interest income, the difference between interest earned and interest spent, increased 18 percent year on year to Rs 10,936 in the first quarter of the 22 fiscal year from Rs 9,280 in the first quarter of fiscal year 21. Net interest margin was 3.89% in the first quarter of fiscal year 22, up from 3.69% in the first quarter of fiscal year 21.

Non-interest income excluding treasury income increased 56% year-on-year (YoY) to Rs 3706 crores in the first quarter of the current fiscal year from Rs 2,380 crore in the first quarter of 2021

Principal operating income, which represents profit before reserves and taxes excluding treasury income, increased 23% YoY to Rs 8,605 for the reporting quarter from Rs 7,014 crore in the same quarter of the previous fiscal year.

“The reserves (excluding taxes) were Rs 2,852 crores in the first quarter of 2022 compared to Rs 7,594 crore in the first quarter of 2021. During the first quarter of 2022, the bank changed its policy on problem loans, making it more conservative. The change in policy resulted in an increase in provisions for non-performing advances of Rs 1,127 crores for aligning loan regulations with the revised policy, ”ICICI Bank said in a statement on Saturday.

Based on its current portfolio assessment, ICICI Bank stated that it has written off Covid-19 reserves in the amount of Rs 1,050 crores made in earlier periods. As of June 30, 2021, the Bank had a provision for Covid-19 in the amount of Rs 6.425

ICICI Bank’s retail loan portfolio grew 20% year-on-year, accounting for 61.4% of the total loan portfolio for the June quarter. The total amount of bank advances during the quarter increased by 17% compared to the same period last year and amounted to 738,598 crores from Rs 631,215 in the same quarter last year.

ICICI Bank’s total deposits increased 16% year on year to Rs 926,224 during the monitoring period. As of June 30, 2021, the bank claimed to have 5,268 branches and 14,141 ATMs in its network.

In terms of asset quality, ICICI’s net non-performing assets (NPA) increased slightly to 1.16 percent of net advances at the end of June 2021 from 1.14 percent at the end of June 2020. gross advances by June 2021 from 5.46% in June 2020. The gross defaults written off in the June quarter were Rs 1,589.

ICICI Bank’s total capital adequacy as of June 30, 2021 was 19.27% ​​and Tier 1 capital adequacy (including Q1 2022 earnings) was 18.24%, compared with a minimum regulatory requirement of 11.08% and 9.08% respectively.

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