ICICI Bank gets back in black with net profit of Rs 1,908 crore in Q1 FY20, better asset quality

ICICI Bank reported a standalone net profit of Rs 1,908.3 crore during the quarter ended on June 31, 2019. The private lender had posted a loss of Rs 119.55 crore during the corresponding quarter last fiscal, and a profit of Rs 969.06 crore during the March quarter of last fiscal. In consolidated terms, the profit after tax was Rs 2,513.69 crore in Q1 FY20, as compared to Rs 5 crore in Q1 FY19.

The ICICI Bank registered net interest income (NII) of Rs 7,737 crore during the June quarter of FY20, amounting to a year-on-year increase of 27 per cent from Rs 6,102 crore. "NII in Q1 -2020 includes Rs 184 crore of interest on income tax refund compared to Rs 8 crore in Q1-2019 and Rs 414 crore in Q4-2019," the lender said in a filing to the Bombay Stock Exchange.

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"The net interest margin was 3.61% in Q1-2020 compared to 3.19% in Q1-2019 and 3.72% in Q4-2019. The impact of interest on income tax refund and interest collection from NPLs on net interest margin was about 17 basis points in Q1-2020 compared to about 25 basis points in Q4-2019," ICICI Bank further added.

The non-interest income of ICICI Bank, excluding treasury income, was Rs 3,247 crore in Q1 FY20, as compared to Rs 3,085 crore in Q1 FY19. Meanwhile, provisions and contingencies slipped down to Rs 3,495.73 crore during the quarter under review, as compared to Rs 5,971.29 crore during the corresponding quarter last year.

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The ICICI Bank also improved its asset quality during the June quarter of FY20. The net NPA decreased by 51 per cent to Rs 11,857 crore as on June 30, 2019, from Rs 24,170 crore the same quarter last fiscal. The net NPA ratio also slipped down to 1.77 per cent during the quarter ended June 30, 2019, in comparison to 4.19 per cent the same quarter last year. The gross additions to NPA were Rs 2,779 crore in Q1 FY20, as opposed to Rs 4,036 crore in Q1 FY19.

"Total deposits increased by 21% year-on-year to Rs 660,732 crore at June 30, 2019. Average CASA deposits increased by 12.3 per cent year-on-year in Q1-2020. The period-end CASA ratio was 45.2 per cent at June 30, 2019, compared to 49.6 per cent at March 31, 2019 and 50.5 per cent at June 30, 2018. The average CASA ratio was 43.4 per cent in Q1-2020 compared to 44.6% in Q4-2019 and 46.1 per cent in Q1-2019," the bank said in its stock exchnage filing.

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