ICICI Bank Q4 standalone profit jumps 260.5% y-o-y, NII increases 17%

Net interest income (NII) increased by 17% year-on-year to Rs 10,431 crore (US$ 1.4 billion) in Q4-2021 from Rs 8,927 crore (US$ 1.2 billion) in Q4-2020.

NII is the difference between the interest earned and interest expended.

The net interest margin was 3.84% in Q4-2021 compared to 3.67% in the quarter ended December 31, 2020 (Q3-2021) and 3.87% in Q4-2020, the bank said.

The domestic advances grew by 18% year-on-year and 6% sequentially at March 31, 2021. Total advances increased by 14% year-on-year to Rs 733,729 crore (US$ 100.4 billion) at March 31, 2021 from Rs 645,290 crore (US$ 88.3 billion) at March 31, 2020.

"Growth in the performing domestic corporate portfolio was about 13% year-on-year driven by disbursements to higher rated corporates and public sector undertakings (PSUs) across various sectors to meet their working capital and capital expenditure requirements," the bank said.

The Bank had a network of 5,266 branches and 14,136 ATMs at March 31, 2021

Provisions (excluding provision for tax) were Rs 2,883 crore (US$ 394 million) in Q4-2021 compared to Rs 5,967 crore (US$ 816 million) in Q4- 2020.

During Q4-2021, the Bank utilised contingency provision amounting to Rs 3,509 crore (US$ 480 million) towards proforma NPAs as of December 31, 2020, as these loans have now been classified as per the RBI guidelines.

Further, the Bank made additional Covid-19 related provisions of Rs 1,000 crore (US$ 137 million) during Q4-2021.

At March 31, 2021, the Bank held Covid-19 related provision of Rs 7,475 crore (US$ 1.0 billion).

The net NPA ratio declined to 1.14% at March 31, 2021 from 1.26% (on a proforma basis at December 31, 2020) and 1.41% at March 31, 2020.

"Excluding NPAs, the total fund based outstanding to all borrowers was Rs 3,927 crore, or about 0.5 per cent of the total loan portfolio, at March 2021. The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding fund and non-fund based outstanding to NPAs) was Rs 13,098 crore at March 2021 compared to Rs 13,654 crore at December 2020," the bank added.

Recoveries and upgrades, excluding recoveries from proforma NPAs, write-offs and sale, from non-performing loans were Rs 2,560 crore in the quarter ended March 2021, said the bank.

Non-interest income, excluding treasury income, was Rs 4,137 crore (US$ 566 million) in Q4-2021 compared to Rs 4,013 crore (US$ 549 million) in Q4-2020

Fee income grew by 6% year-on-year to Rs 3,815 crore (US$ 522 million) in Q4-2021 from Rs 3,598 crore (US$ 492 million) in Q4-2020. Retail fees constituted 77% of total fees in Q4-2021.

 There was a treasury loss of Rs 25 crore (US$ 3 million) in Q4-2021 compared to a profit of Rs 242 crore (US$ 33 million) in Q4-2020. The treasury loss in Q4-2021 reflects the increase in yields on fixed income and government securities

The bank's Board has recommended a dividend of Rs 2 per share (equivalent to dividend of US$ 0.05 per ADS) in line with applicable guidelines. "The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course," the bank said.

The consolidated profit after tax was Rs 4,886 crore (US$ 668 million) in Q4- 2021 compared to Rs 5,498 crore (US$ 752 million) in Q3-2021 and Rs 1,251 crore (US$ 171 million) in Q4-2020. Consolidated assets grew by 14% year-on-year to Rs 1,573,812 crore (US$ 215.3 billion) at March 31, 2021 from Rs 1,377,292 crore (US$ 188.4 billion) at March 31, 2020.

The Bank’s total capital adequacy at March 31, 2021 was 19.12% and Tier-1 capital adequacy was 18.06% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively.