ICICI Bank Q2 net profit grows fourfold

ICICI Bank Q2 net profit grows fourfold

Shares of ICICI Bank surged more than 6% Monday early trade as its profit for the quarter to September hit record high.
The private sector lender on Saturday had reported over four-fold jump in consolidated net profit at Rs 4,882 crore for September quarter driven largely by core income growth and lesser provisions for the pandemic-related impact.
In the year-ago quarter, the profit stood at Rs 1,131 crore.
On a standalone basis, the second largest private sector lender’s profit after tax jumped to Rs 4,251 crore as against Rs 655 crore in the year-ago period, which is the highest quarterly growth in its history.
The core net interest income(NII) moved up 16% to Rs 9,366 crore despite a 0.10% contraction in the net interest margin (NIM) to 3.57% and credit growth being nearly half that of deposit growth at 6%.
Its strategy of “risk calibrated growth and strong NII aided to the surge in bottomline.
However, the net interest margin or NIM was lower because of the excess liquidity in the system, as the bank was not able to deploy the higher deposits it got for loans.
Its overall provisions came at Rs 2,995 crore as against the Rs 2,506 crore in the year-ago period and the elevated Rs 7,593 crore in the preceding quarter.
It said over Rs 1,400 crore of loans could have slipped into non performing advances (NPAs) during the quarter, but for the Supreme Court mandate not to classify accounts up to August 31 as NPAs. However, the bank has made an extra provision of Rs 497 crore on such advances.

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