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ICICI Bank's Q3 profit hits record high, BB and below rated pool jumps: Key takeaways

The private lender had hit Rs 3,000 crore profit mark only thrice in history.

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Last Updated: Jan 25, 2020, 04.39 PM IST
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ICICI Bank gross NPA at 5.95 per cent was lowest since June quarter of 2016, when it had come in at 5.3 per cent.
NEW DELHI: ICICI Bank’s December quarter profit after tax (PAT) came in at Rs 4,146.50 crore which was its highest quarterly profit ever, data available with corporate database AceEquity suggests. The profit growth at 158 per cent was in line with the broad 150-200 per cent growth brokerages had anticipated in an ETNow poll.

Gross NPAs for the lender stood at 5.95 per cent, which was lowest since the June quarter of 2016 while provisions and contingencies at Rs 2,083.20 crore were lowest since the September quarter of 2015. That said outstanding to borrowers rated BB or below jumped. Here are the key takeaways from the ICICI Bank’s Q3 results:

Profit hits record high, soars 158%
ICICI Bank’s Q3 profit at Rs 4,146.50 crore was its highest for any quarter. The private lender had hit Rs 3,000 crore profit mark only thrice in history. Saturday’s profit figure was ICICI Bank’s first in the Rs 4,000 crore range. The bank had reported Rs 665 crore profit for September quarter and Rs 1,604.91 crore profit for the same quarter last year.

Provisions drop 51% YoY, lowest since 2015
The bank set aside Rs 2 083.20 crore towards provisions and contingencies, which was 51 per cent lower than Rs 4,244 crore provided for the year-ago quarter. According to AceEquity, these were the lowest provisions the bank has made since the September quarter of 2015, when the figure stood at Rs 942.20 crore.

Gross NPAs drop to multi-year low
ICICI Bank gross NPA at 5.95 per cent was lowest since June quarter of 2016, when it had come in at 5.3 per cent. Gross NPAs stood at 6.37 per cent in September quarter and 7.75 per cent in the December quarter of 2017.

Outstanding to pool rated BB and below rises
Fund-based and non-fund based outstandings to borrowers rated BB and below (excluding NPAs) stood at Rs 17,403 crore compared with Rs 16,074 crore in September quarter. It was Rs 17,525 crore as of March 31.

Retail leads loan growth, balance sheet hits Rs 10L cr mark
Loan growth for December quarter stood at 16 per cent YoY, with retail loans expanding 19 per cent YoY and the corporate portfolio 12 per cent. The bank's balance sheet crossed the Rs 10 lakh crore mark, as total assets rose to Rs 10,07,068 crore as of December 31.

Including non-fund outstanding, retail loans accounted for 52 per cent of the total portfolio at December 31, 2019. Total advances increased 13 per cent YoY to Rs 6,35,654 crore from Rs 5,64,308 crore.

NII grows at 24%, NIM improves

Net interest income (NII) for the quarter rose 24 per cent YoY to Rs 8,545 crore against Rs 6,875 crore in the year-ago quarter. Non-interest income, excluding treasury income, stood at Rs 4,043 crore against Rs 3,404 crore YoY. Net interest margin (NIM) came in at 3.77 per cent against 3.64 per cent reported for September quarter and 3.40 per cent in the year-ago quarter.
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