ICICI Q1 Earnings Are Out: Net Profits Up 36% At 2,599 Crore – Don’t Miss News

ICICI Q1 Earnings Are Out: Net Profits Up 36% At 2,599 Crore – Don’t Miss

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Time icon July 26, 2020

Prior to commencing, a quick comparison reveals, the second largest private sector lender had posted a net profit of Rs 1,908.03 crore for the corresponding period a year ago. ICICI Bank Limited is an Indian multinational banking and financial services company with its registered office in Vadodara, Gujarat and corporate office in Mumbai, Maharashtra.

ICICI Bank on Saturday reported a 36.22 per cent rise in net profit to Rs 2,599.15 crore in the quarter ended June 30 compared to the corresponding period a year ago, but missed analysts’ estimates. 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.

Important Points to note

  • The net profit fell short of analysts’ estimates. Analysts had on average estimated the lender’s profit at Rs 2,747 crore Vs 2,599 news agency Reuters reported citing Refinitiv data.
  • ICICI Bank said its total interest income stood at Rs 19,924.35 crore in the first quarter of current financial year, up 10.81 per cent on a year-on-year basis.
  • The lender’s net interest income – or interest earned minus interest expended – climbed up 19.93 percent to Rs 9,279.75 crore.
  • ICICI Bank said its provisions – excluding those related to COVID-19 – declined 42 percent compared to the year-ago period. The lender said it made additional provision to the tune of Rs 5,550 crore related to COVID-19, with the objective of completely cushioning the balance sheet from the impact of the pandemic.
  • The asset quality of banks in India is expected to take a severe hit due to the coronavirus-led economic crisis. The country’s central bank has warned the bad loans in the banking system could soar to almost 15% of total loans by March 2021.

Domestic advances and Retail loan portfolio highlights

The year-on-year growth in domestic advances was 10% at June 30, 2020. The growth in the retail loan portfolio was 11% YoY at June 30, 2020. Total advances increased by 7% YoY to Rs 631,215 crore at June 30, 2020 from Rs 592,415 crore.

Total deposits increased by 21% YoY to Rs 801,622 crore at June 30, 2020. Average current account deposits increased by 20% YoY in Q1-2021. Average savings account deposits increased by 14% year-on-year in Q1-2021. Total term deposits increased by 27% YoY to Rs 461,007 crore at June 30, 2020.

Also Read : News Highlights From July 2020

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