ICICI Bank Share Q3 Results

ICICI Bank Ltd

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:44:57+05:30

For a long time, ICICI Bank consistently quoted at a discount to HDFC Bank as its growth was not considered to be as profitable as that of HDFC Bank. HDFC Bank continues to be more profitable even in the latest quarter as a percentage of sales, but what has changed is the net interest margins. The gap in NIMs between ICICI Bank and HDFC Bank has now narrowed to less than 10 bps. That was the big story of Q3 results of ICICI Bank.

ICICI Bank Quarterly Results
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income

₹ 39,866

₹ 40,419

-1.37%

₹ 39,484

0.97%

Operating Profit

₹ 11,152

₹ 10,223

9.08%

₹ 11,125

0.24%

Net Profit

₹ 6,537

₹ 5,498

18.89%

₹ 6,092

7.30%

Diluted EPS

₹ 9.21

₹ 7.84

 

₹ 8.60

 

Operating Margins

27.97%

25.29%

 

28.18%

 

Net Margins

16.40%

13.60%

 

15.43%

 

Gross NPA Ratio

4.13%

4.38%

 

4.82%

 

Net NPA Ratio

0.85%

0.63%

 

0.99%

 

Return on Assets (Ann)

1.90%

1.70%

 

1.79%

 

Capital Adequacy

17.91%

18.04%

 

18.33%

 

 

For the quarter ended December 2021, ICICI Bank reported a minor -1.37% fall in total revenues over the Dec-20 quarter at Rs.39,866 crore. Let us look at where were the major components of the revenue performance. ICICI Bank witnessed all round growth across the three principal banking verticals of treasury, wholesale banking and retail banking. The revenues were marginally higher on a sequential basis.

For the Dec-21 quarter, the operating profits of ICICI Bank were up 9.08% at Rs.11,152 crore. Operating profits across wholesale banking and retail banking were up on YoY basis while treasury profits were lower compared to the same quarter in the previous year. The provisions for doubtful assets in Dec-21 quarter were nearly 21% lower at Rs.2,129 crore and that played a big part in the company reporting better PAT numbers in the quarter.

The Net interest income or NII was up 23% YoY at Rs.12,236 crore, which is fairly robust growth in a tough quarter. The more important net interest margins or NIM improved very sharply from 3.67% to 3.96%; i.e. 29 bps higher YoY. While NIMs were slightly lower sequentially, the YoY growth is good enough. ICICI Bank has substantially narrowed its gap with HDFC Bank on NIMs. Non-interest income was higher by 25% YoY.

Domestic loan portfolio grew by 18% YoY. The bank saw solid growth across retail loans, corporate loans and even SME loans. With the respect to deposits, the average CASA (current and savings account) deposit component stood at 45% of total deposit base. The Operating margin for the quarter or OPM expanded from a level of 25.29% in Dec-20 quarter to 27.97% in the Dec-21 quarter.

Now for the bottom line. Net profits for the Dec-21 quarter was up 18.89% at Rs.6,537 crore. This was due to better interest spreads, higher other income component and lower provisioning for doubtful debts. As a result, the net profit margins improved from 13.60% in Dec-20 quarter to 16.40% in the Dec-21 quarter. Gross NPAs at above 4% still need to be worked on but net NPAs indicate substantial provisions already made.

Also Read:-

HDFC Bank Quarterly Results


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