Beating market estimates, private sector lender ICICI Bank on Saturday reported a 59.4% increase in year-on-year net profit to Rs 7,018.7 crore for the quarter ended March 2022 from Rs 4,402.61 crores of rupees at the same period a year ago.
Rising net interest income and improving asset quality boosted the bank’s bottom line.
The bank’s board also approved a dividend of Rs 5 per share for shareholders.
According to ICICI Bank, net interest income (NII) increased by 21% from Rs 10,431 crore a year ago to Rs 12,605 crore in the fourth quarter of FY2022. interest was 4% against 3.84% last year.
Gross non-performing assets (NPA) fell to Rs 33,919 crore (3.60% of advances) in March 2022 from Rs 41,373 crore (4.96%) a year ago.
The bank said NPA recoveries and upgrades, excluding write-offs and sales, rose to Rs 4,693 crore in Q4FY22 from Rs 4,209 crore in the third quarter of 2022.
Gross NPA write-offs in the fourth quarter were Rs 2,644 crore and the provision coverage rate on NPAs was 79.2% as of March 31, 2022.
On a stand-alone basis, the bank’s profit after tax (PAT) increased by 44% year-on-year to Rs 23,339 crore in FY2022 from Rs 16,193 crore in FY ended March 31, 2021.
Factors that generated benefits
A host of factors – improving asset quality, lower provisioning, rising interest income – led the private bank to post a nearly 60% increase in net profit in the fourth quarter. For FY22, after-tax profit increased by 44%.
The retail loan portfolio, excluding rural loans, increased 20% year-on-year and 6% sequentially, and represented 52.8% of the total loan portfolio in March 2022.
Including non-fund outstandings, the retail loan portfolio represented 43.8% of the bank’s overall portfolio.
The corporate banking portfolio grew 43% year-over-year and 10% sequentially, and small and medium-sized enterprises (SMEs) – comprising borrowers with less than Rs 250 crore – increased by 34% annually. over one year and 11% sequentially as of March 31, 2022.
The growth of the national wholesale banking portfolio was 10% year-on-year.
Including the Covid-19 related contingency reserve of Rs 6,425 crore, the bank held total contingency reserves of Rs 7,450 crore as of March 31, 2022.
Meanwhile, according to a PTI report, ICICI Bank has approved the appointment of Rakesh Jha as a full-time administrator (designated as Executive Director) subject to regulatory approvals for a period of five years from May 1. 2022 or the date of approval of his appointment. by RBI, he said.
The board also took note of the resignation of Vishakha Mulye, executive director with effect from May 31, 2022, the report adds.