ICICI Bank reported a 59.4% year-on-year jump in net profit to Rs 7,018.71 crore for the fiscal fourth quarter on the back of improved asset quality, less provisions and a strong loan book growth.

In the year-ago period, the country’s second-largest private sector lender had reported a net profit of Rs 4,402.61 crore. 

“In January, we saw a sharp rise in Covid-19 cases that resulted in moderation of economic activity. However, the impact of the third wave of the pandemic was mild and with the decline in the number of Covid-19 cases, economic activity gained momentum. Increase in power demand, rail freight revenue, e-way bill generations and GST collections all led to the improvement in economic activity,” ICICI Bank managing director and CEO Sandeep Bakshi said.

 The bank’s net interest income (NII) increased 21% YoY to Rs 12,605 crore in the quarter ended 31 March, 2022, from Rs 10,431 crore a year ago.

 Net interest margin (NIM) was 4% at the end of the reporting quarter, improving on the 3.84% that the bank had reported a year ago and 3.96% a quarter ago.

Non-interest income, excluding treasury income, increased 11% YoY to Rs 4,608 crore. The bank saw a treasury gain of Rs 129 crore in the quarter under review, from a loss of Rs 25 crore a year ago.

Fee income grew 14% to Rs 4,366 crore. Fees from retail, rural, business banking and SME customers constituted 77% of the fee income.

Total advances increased by 17% year-on-year and 6% sequentially to Rs 8,59,020 crore. The retail loan portfolio, excluding rural loans, grew by 20% year-on-year and 6% sequentially, and comprised 52.8% of the total loan portfolio at end of the quarter. Including non-fund outstanding, the retail loan portfolio, was 43.8% of the total portfolio on March 31, 2022.

“We aim to grow the operating profit within the guard rails of compliance and risk. Through our 360 degree customer centric approach, we focus on opportunities across client and segments. We focus on growing our loan book in a granular manner with risk and reward,” Bakshi said.

The bank's total deposits grew 14% YoY and 5% sequentially to Rs 1,064,572 crore.

Provisions, excluding provision for tax, fell 63% YoY to Rs 1,069 crore in the January-March quarter of FY22 from Rs 2,883 crore a year ago. Provisions for Q4-2022 included contingency provision of Rs 1,025 crore made on a prudent basis. 

The bank’s net non-performing assets (NPAs) fell 24% YoY and 5% sequentially to Rs 6,961 crore as on 31 March 2022. The net NPA ratio fell to 0.76% from 0.85% in the quarter ended December and 1.14% a year ago.

“Looking ahead, we see many opportunities to grow the core operating profit in a risk-calibrated manner. We will calibrate our growth in the near term based on the operating environment and the future trajectory of the Covid-19 pandemic,” ICICI Bank executive director Sandeep Batra told reporters.

The bank’s board recommended a dividend of Rs 5 per share (equivalent to a dividend of $0.13 per ADS) in line with applicable guidelines. The declaration of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course, the bank said.