ICICI Bank Q1 net profit rises 36% to Rs 2,599 crore

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ICICI Bank on Saturday reported a 36 percent increase in its standalone net profit at Rs 2,599 crore for the first quarter ended June 2020.

The bank had posted a profit of Rs 1,908 crore in the same quarter a year ago.

Total income during the quarter rose to Rs 26,066 crore from Rs 21,405.50 crore a year earlier, the bank said in a regulatory filing.

On a consolidated basis, its net profit for the April-June period improved by 24 percent at Rs 3,117.68 crore as against Rs 2,513.69 crore in the corresponding quarter of the previous fiscal.

The bank’s income on a consolidated basis rose to Rs 37,939.32 crore in the said quarter from Rs 33,868.89 crore in April-June 2019.

During the quarter, the bank sold equity shares representing 3.96 percent in ICICI Lombard General Insurance Company Limited and 1.50 percent in ICICI Prudential Life Insurance Company Limited for a total consideration of Rs 3,092.93 crore.

“The sale resulted in net gain (after sale-related expenses) of Rs 3,036.29 crore in standalone financial results and Rs 2,715.87 crore in consolidated financial results for 01-2021,” it said.

The lender witnessed an improvement in asset quality as gross non-performing assets (NPAs) fell to 5.46 percent of the gross advances by the end of June 2020, from 6.49 percent a year ago.

Net NPAs were 1.23 percent, down from 1.77 percent a year ago.

However, the provisioning for bad loans and contingencies doubled to Rs 7,593.95 crore for April-June, as against Rs 3,495.73 crore a year earlier.

“During Q1 FY21, the bank has made an additional COVID-19 related provision amounting to Rs 5,550 crore. At June 30, 2020, the bank held COVID-19 related provision of Rs 8,275 crore. This additional provision made by the bank is more than requirement as per the RBI guideline dated April 17, 2020,” it said.

The year-on-year growth in domestic advances was 10 percent as on June 30, 2020, it said.

Total advances increased by 7 per cent to Rs 6,31,215 crore from Rs 5,92,415 crore as on June 30, 2019.

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