ICICI Bank reported a 36.2 per cent increase on annual basis in net profit during the quarter ended June 30, 2020, on the back of stake sale in life and general insurance subsidiaries. The private lender posted a net profit of Rs 2,559.15 crore in the quarter under review, as opposed to Rs 1,908.03 crore in the corresponding period last year.
"During 01-2021, the Bank sold equity shares representing 3.96 per cent in ICICI Lombard General Insurance Company Limited and 1.50 per cent in ICICI Prudential Life Insurance Company Limited for a total consideration of Rs 3,092.93 crore. The sale resulted in net gain (after sale-related expenses) of Rs 3,036.29 crore in standalone financial results and Rs 2,715.87 crore in consolidated financial results for Q1-2021," ICICI Bank told the exchanges on Saturday.
Net interest income (NII), the difference between interest earned and interest expended, increased by 20 per cent year-on-year to Rs 9,280 crore in Q1 2021 from Rs 7,737 crore in Q1 FY20. Net interest margin was 3.69 per cent in Q1 FY21 compared to 3.87 per cent in the March quarter last fiscal and 3.61 per cent in June quarter last fiscal. This underlines the higher liquidity with the Bank due to strong deposit inflows and limited credit demand due to the lockdown, ICICI Bank said in its statement.
During Q1 FY21, ICICI Bank made provisions worth Rs 5,500 crore to protect the balance sheet from pressures due to economic implications of the pandemic. In total, the lender made provisions to the tune of Rs 7,594 crore during the quarter under review, as opposed to Rs 3,496 crore in the same quarter previous year.
"During 01-2021, the Bank has made an additional COVID-19 related provision amounting to Rs 5,550 crore. At June 30, 2020, the Bank held COVID-19 related provision of Rs 8,275 crore. This additional provision made by the Bank is more than requirement as per the RBI guideline dated April 17, 2020," the bank said in a regulatory filing.
ICICI Bank said its total deposits grew 21 per cent year-on-year to Rs 8.02 lakh crore during the June quarter of this fiscal. For the quarter under review, the bank reported a rise in average current account deposits by 20 per cent year-on-year in Q1 FY21, while its average savings account deposits increased by 14 per cent year-on-year. Total term deposits increased by 27 per cent year-on-year to Rs 4.61 crore at June 30, 2020. The average CASA ratio was 41 per cent in Q1 FY21, compared to 42.3 per cent in Q4 FY20 and 43.4 per cent in Q1 FY20.
ICICI Bank's total capital adequacy at June 30, 2020, including profits for Q1 FY21, was 16.32 per cent and Tier-1 capital adequacy was 14.93 per cent compared to the minimum regulatory requirements of 11.08 per cent and 9.08 per cent respectively, the lender further stated.
The private bank saw its asset quality improve in the June quarter. ICICI Bank saw its net non-performing asset (NPA) ratio improve to 1.23 per cent during this quarter from 1.41 per cent in the same quarter last fiscal.