HomeBUSINESSICICI Bank reports 3.41% fall in gross NPA despite 49% growth in...

ICICI Bank reports 3.41% fall in gross NPA despite 49% growth in net profit


The second-largest private lender in India, ICICI Bank, announced on Saturday that its gross non-performing asset (NPA) ratio decreased to 3.41 per cent as of June 30, 2022, from 5.15 per cent registered in the same quarter last year. It also disclosed that its net profit has increased by 49.59 per cent to 6,904.94 crore for the quarter ending June 30, 2022 (Q1FY23), from 4,616.02 crore in the same period the previous year. On March 31, 2022, the gross NPA for the bank was 3.60 per cent. The net NPA ratio for ICICI Bank decreased from 0.76 per cent on March 31, 2022, and 1.16 per cent on June 30, 2021, respectively, to 0.70 per cent as of June 30, 2022, suggesting a recovery in asset quality.

There were net contributions of 382 crore to gross NPAs during the first quarter of the current fiscal year, as opposed to net withdrawals of 489 crore in the fourth quarter of 2021–22 and net inflows of 3,604 crore in the first quarter of 2021–22. In Q1 2022–23, gross NPA inflows were 5,825 crore compared to 4,204 crore in Q4 2021–22. In Q1 FY23, NPA recoveries and upgrades were 5,443 crore, up from 4,693 crore in Q4 of 2021–22, excluding write-offs and sales. According to ICICI Bank‘s regulatory filing, the gross NPAs written off in the first quarter of FY23 was 1,126 crore, and the provisioning coverage ratio for NPAs was 79.6%.

“Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to 7,376 crore (US$ 934 billion) or 0.8% of total advances at June 30, 2022 from 8,267 crore (US$ 1.0 billion) at March 31, 2022. The Bank holds provisions amounting to 2,290 crore (US$ 290 million) against these borrowers under resolution, as of June 30, 2022. In addition, the Bank held contingency provisions of 8,500 crore (US$ 1.1 billion) at June 30, 2022. The loan and non-fund based outstanding to performing borrowers rated BB and below reduced to 8,209 crore (US$ 1.0 billion) at June 30, 2022 from 10,808 crore (US$ 1.4 billion) at March 31, 2022,” ICICI Bank said in a regulatory filing.

Core operating profit, defined as profit before provisions and taxes excluding treasury income, increased by 19% year-over-year to Rs. 10,273 crore in Q1-2023 from Rs. 8,605 crore in the quarter ended June 30, 2021. Core operating profit increased by 21% year-over-year excluding dividend income from subsidiaries/associates, said ICICI Bank. Net interest income (NII) for the bank climbed by 21% year over year, from Rs. 10,936 crore in Q1 2022 to Rs. 13,210 crore in Q1 2023. In Q1-2023, the net interest margin was 4.01 per cent, up from 3.89% in the same quarter of previous year. The bank’s Non-interest income, excluding treasury income, increased by 25% year-on-year to 4,629 crore in Q1-2023 from 3,706 crore in Q1-2022.

On a standalone basis, the profit after tax increased by 50% year over year to 6,905 crore in Q1-2023 from 4,616 crore in Q1-2022. The profit before tax increased by 52% year over year to 9,165 crore in Q1-2023 from 6,043 crore in Q1-2022. Consolidated assets increased from 1,536,731 crore in the same quarter of last year to 1,742,777 crore on June 30, 2022, an increase of 13% year over year.

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