New Dekhi: ICICI Bank today reported its Q1 FY21 profit at Rs 2,599.1 crore, 36.2 percent year-on-year increase due to stake sale in general and life insurance subsidiaries. This is despite provisioning of Rs.5,550 crore due to Covid 19.
Net interest income during the quarter increased by 20 percent to Rs 9,280 crore compared corresponding period of the previous fiscal, with loan growth of 7 percent and strong deposits growth of 21 percent YoY.
“Deposits increased by 21 percent year-on-year to Rs 8,01,622 crore in June quarter. Average current and saving accounts deposits increased by 20 percent and 14 percent YoY, while term deposits jumped by 27 percent,” it added.
The net interest margin was 3.69 percent in Q1FY21, falling from 3.87 percent in March quarter but increased 8 bps YoY, reflecting the higher liquidity with the bank due to strong deposit inflows and limited credit demand due to the lockdown, ICICI said.
The bank’s balance sheet has been strengthened as it sold a stake in its insurance business for Rs. 840 crore. “The sale resulted in net gain (after sale related expenses) of around Rs 3,036.29 crore in standalone financial results and Rs 2,715.87 crore in consolidated financial results for Q1FY21,” ICICI Bank said.
Provisions and contingencies in Q1 shot up 117.2 percent year-on-year to Rs 7,594 crore and the same increased by 27.3 percent sequentially, due to additional COVID-19 related provisions.
Asset quality has seen improvement during the quarter with gross non-performing assets (NPA) as a percentage of gross advances falling 7 bps QoQ to 5.46 percent, while net NPAs declined 18 bps QoQ to 1.23 percent.
