ICICI Bank Results: ICICI Bank Q2 Results (2021-22) Date, News & Earnings

ICICI Bank Results: ICICI Bank Q2 Results (2021-22) Date, News & Earnings

Last updated: 24 Oct, 2021 | 01:02 pm

ICICI Bank Results: ICICI Bank Q2 Results (2021-22) Date, News & Earnings

Profit beats estimates - The net profit grew 29.6% year-on-year to Rs 5,510.95 crore, marginally beating street expectations. Analysts had anticipated a profit of about Rs 5,441 crore. Last year, for the July to September quarter, the net profit reported by the bank was Rs 4,251 crore. The bank was able to post a higher profit on the back of a healthy rise in Net Interest Income.

Net interest income rises - A bank’s primary business is to borrow money and lend the same at a rate higher than the rate at which they borrowed. The income generated from this differential is known as Net Interest Income. Net interest income for ICICI Bank grew at 24.8% Y-o-Y to Rs 11,689.7 crore. The bank reported a net interest margin of 4% and non-interest income at Rs 4,797 crore, up by 19% over the year-ago period. 

The bank has reported a fall in treasury income to Rs 397 crore from Rs 542 crore YoY due to a high base in Q2FY21. In Q2FY21, the bank gained Rs 305 crore from the sale of shares in ICICI Securities.

ICICI Bank Q2 results highlights:

Asset quality improves - The asset quality of ICICI bank improved sequentially while gross Non-Performing Asset (NPA) fell to 4.82% for the quarter ending September. For the April to June quarter, it was 5.15%. 

The net NPA came down from 1.16% (June quarter) to 0.99% in the September quarter. It is the lowest net NPA bank has reported since December 2014.

Loan Restructuring - In the second round of Covid restructuring, the bank restructured Rs 4,158 crore in loans. The major part of this came from personal loans that account for Rs 3,029 crore. In the first round of Covid restructuring, the bank had restructured Rs 3,737 crore in loans. The provisions for the quarter were lower by 9% Y-o-Y and stood at Rs 2,713 crore.

Business Growth - The domestic advances for the bank grew by 19% YoY and 4% QoQ for the quarter ending September. The total advances reported by the bank are Rs 7.64 lakh crore. The retail loan portfolio compromised 62.1% of the total loan book, it was up by 5% sequentially and 20% Y-o-Y. The business banking portfolio grew by 12% sequentially and 43% YoY while the domestic wholesale banking portfolio was up 14% compared to the same period last year.

Deposits - The bank has shown exceptional numbers in terms of deposits. Total deposits rose 17% year-on-year to Rs 9.77 lakh crore. Of this, low-cost current account savings account deposits rose 28% YoY, and the average CASA ratio was at 44%.

Update from Boardroom - The bank in August received approval from the RBI to re-appoint Sandeep Bakshi as MD and CEO of the bank with effect from 15 October 2021 till 3 October 2023.

ICICI Bank Q2 results review:

ICICI Bank has reported a strong set of numbers for Jul-Sep quarter beating street estimates. The deposits as well as the loan book saw a sequential increase. The gross and net NPAs also reduced sequentially. With the increase in economic activity, disbursements across all retail products increased sequentially. Mortgage disbursements were close to the level seen in the quarter ended March 2021, reflecting the increase in demand coupled with the bank’s seamless customer onboarding experience through pre-approved offers and digitisation. Disbursements of personal loans and auto loans were also close to Q4FY21 levels.

Earlier this month, global rating agency Moody's affirmed the long-term local and foreign current deposit ratings of ICICI Bank at Baa3. At the same time, its rating outlook has also been changed to stable from negative.