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ICICI Bank June Quarter Profit Rises 36% To Rs 2,599 Crore; Asset Quality Improves

ICICI Bank said its provisions declined 42% on a year-on-year basis

 

ICICI Bank on Saturday reported a net profit of Rs 2,599.15 crore for the quarter ended June 30, marking an increase of 36.22 per cent compared to the corresponding period a year ago. In a regulatory filing, the country’s third largest private bank by market capitalisation said its total income from operations came in at Rs 26,066.95 crore. That marked a rise of 21.78 per cent compared to the year-ago period. The bank’s provisions came down as its asset quality improved.

 

ICICI Bank said its total interest income stood at Rs 19,924.35 crore in the first quarter of current financial year, up 10.81 per cent on a year-on-year basis.

 

The lender’s net interest income – or interest earned minus interest expended – climbed up 19.93 per cent to Rs 9,279.75 crore.

 

The bank’s net interest margin (NIM) – a key measure of profitability – was at 3.69 per cent in the quarter ended June 30, 2020, as against 3.87 per cent in the previous quarter, and 3.61 per cent in the quarter ended June 30, 2019.

 

ICICI Bank said its provisions – excluding those related to COVID-19 – declined 42 per cent compared to the year-ago period. The lender said it made additional provision to the tune of Rs 5,550 crore related to COVID-19, with the objective of completely cushioning the balance sheet from the impact of the pandemic.

 

Gross non-performing assets – or bad loans – as a percentage of total loans came in at 5.46 per cent in the first quarter of financial year 2020-21, as against in 5.53 per cent in the previous quarter, and 6.49 per cent in the quarter ended June 30, 2019.

 

The impact of COVID-19 is highly uncertain and will depend on its ongoing spread, the effectiveness of steps taken by governments, central banks and ICICI Bank, and the time it takes for economic activities to return to pre-pandemic levels, it said.

 

On Friday, shares in ICICI Bank had ended 2.66 per cent lower at Rs 381.85 apiece on the BSE on Friday, underperforming the benchmark Sensex index which recovered most of the day’s losses to close on a flat note.

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