ICICI Bank Q4 profit jumps 26% to Rs 1,221 crore; announces Rs 25,000 crore fund-raising plan

Deposits grew 1.18 lakh crore on-year basis to Rs 7,70,968 crore.

Private sector lender ICICI Bank reported a 26% on-year jump in standalone profit to Rs 1,221 crore for the quarter ended March 31. Profit at the end of March 2019 stood at Rs 969 crore. The bank saw total income in the March quarter surge by Rs 2,500 from the previous year. ICICI Bank also reported a healthy trend as asset quality improved with the percentage of gross non-performing customer assets falling to 5.53% from 6.70% in the on-year. Additionally, ICICI Bank announced that the Board of Directors has also approved a fundraising plan of Rs 25,000 crore through non-convertible debentures. 

Deposits grew 1.18 lakh crore on-year basis to Rs 7,70,968 crore. ICICI Bank’s Net interest income increased by 17% on-year to Rs 8,927 crore in the March quarter. The profit before provisions and tax, excluding treasury income increased by 18% to ₹ 7,148 crore from ₹ 6,077 crore on-year basis. Credit growth remained healthy with a 13% increase in domestic advances. “The Bank has continued to leverage its strong retail franchise, resulting in a 16% year-on-year growth in the retail loan portfolio at March 31, 2020. Including non-fund outstanding, retail was 53.3% of the total portfolio at March 31, 2020,” ICICI Bank said. 

With net non-performing assets coming down by 26% to Rs 10,114 crore, recoveries and upgrades, excluding write-offs, from nonperforming loans were Rs 1,883 crore in the March quarter. The provision coverage ratio on non-performing loans, including cumulative technical write-offs, was 86.8% at March 2020 compared to 80.7% at March 2019. Provisions stood at Rs 3,242 crore while coronavirus related provisions were Rs 2,725 crore. 

ICICI Bank reassured investors and customers of its strong fundamentals that will help it tide through the current turmoil. “ The Bank is using this period to further strengthen its platforms, its ability to capture market potential and its delivery capabilities, while enhancing efficiency,” it said. About 97% of the bank’s branches are functional with reduced working hours during the lockdown.  The Bank’s total capital adequacy at the end of March, 2020 as per the Reserve Bank of India’s guidelines on Basel III norms, including profits for FY2020, was 16.11% and Tier-1 capital adequacy was 14.72% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively.