ICICI Bank on May 9 has reported strong numbers in the quarter ended March 2020, however the numbers missed the analysts estimates due to higher COVID-19 related provisions.
The board has not recommended any dividend for FY2020 as per RBI direction to banks.
Here are key takeaways from earnings:
Profit
The bank has reported a 26 percent year-on-year growth in standalone profit at Rs 1,221.36 crore in quarter ended March 2020 against profit of at Rs 969.06 crore.
Pre-provision operating profit
The core operating profit increased by 18% year-on-year to Rs 7,148 crore in Q42020 from Rs 6,077 crore, YoY, while excluding interest on income tax refund, core operating profit grew by 26% year-on-year in Q42020.
Net Interest Income and Net Interest Margin:
Net interest income of the bank rose 17.1 percent year-on-year to Rs 8,926.89 crore with 10 percent loan growth and 18 percent increase in deposits YoY. The net interest margin was at 3.87% in Q42020 versus 3.77% in Q32020) and 3.72% in Q42019.
Fund raising
The bank's board approved fund raising by way of issuances of debt securities including by way of Non-Convertible Debentures in domestic markets upto an overall limit of Rs 250 billion by way of private placement & issuances of bonds/notes/ offshore Certificate of Deposits in overseas markets upto USD 3 billion in single/multiple tranches.
Other Income
Non-interest income (other income) in Q4FY20 increased 17.5 percent to Rs 4,255 crore YoY with fee income growth of 13 percent and treasury income rising 55 percent.
Asset Quality
The gross non-performing assets fell 42 basis points sequentially to 5.53 percent and net NPAs dropped 8 basis points to 1.41 percent in quarter ended March 2020.
Provisions
Provisions (excluding Covid-19 related provisions and provision for tax) were Rs 3,242 crore, while Covid-19 related provisions of Rs 2,725 crore in Q42020 against standard assets to further strengthen the balance sheet
Treasury income
Treasury income grew by 55% year-on-year to Rs 242 crore in March quarter from Rs 156 crore in the same period last year.
Deposit
The banks total deposits rose by 18% year-on-year to Rs 770,969 crore in March quarter. The average current account deposits increased by 15% and average savings account deposits increased by 11% year-on-year in Q42020.
Loan Growth
The domestic loan growth stood at 13% year-on-year at March 31, 2020 driven by retail, which grew by 16% year-on-year.
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