Standalone net profit increased to Rs 5,511 crore in the quarter ended September 2021 up from Rs 4,251 crore a year earlier led by a 25% growth in net interest income (NII) which in turn was helped a strong growth in retail loans.
Retail loans grew 20% and comprised 62% of the total loan portfolio at September 30, 2021 leading the 17% growth in total advances and outpacing the 14% growth in wholeaale advances during the quarter.
Executive director Sandeep Batra said the bank will continue to grow its loan book according to its internal risk and return parameters.
“We remain optimistic about the growth of the Indian economy and the many opportunities that it presents for us to grow with the picking up of vaccinations and deleveraging by corporate India,” Batra said.
Non-interest income growth also was healthy led by fees from retail, business banking and SME customers. Fee income grew by 21% year-on-year to Rs 3,811 crore from Rs 3,139 crore (US$ 423 million) a year ago.
Treasury income fell to Rs 397 crore from Rs 542 crore a year earlier and included a gain of Rs 305 crore from sale of shares of ICICI Securities.
Provisions declined by 9% year-on-year to Rs 2,714 crore from Rs 2,995 crore as net additions in NPA at Rs 96 crore were one of the lowest in recent years and down from Rs 3,604 crore in June 2021.
Total additions to NPA additions stood at Rs 5,578 crore in September 2021 out of which about Rs 4600 crore were from retail loans.
Batra said the additions came from large retail products like mortgages and commercial vehicles but recovery from these loans have also been robust which means that there is no cause for worry.
“We did see some impact on NPAs from the retail side in the first quarter of this year but it has been very broad based based on our large retail loan exposures like mortgages and commercial vehicles,” he said.
Recoveries and upgrades of NPAs, excluding write-offs and sale, increased to Rs 5,482 crore in September 2021 from 3,627 crore in June 2021.
The bank wrote off Rs 1,717 crore of loans during the quarter. It also had restructured loans of Rs 9,684 crore or 1.3% of total advances at September 30, 2021 up from Rs 4,864 crore (US$ 655 million) at the end of June 2021.
Its net NPA ratio declined from 1.16% at June 30, 2021 to 0.99% at September 30, 2021 and was the lowest since December 31, 2014.
Besides the Rs 1,950 crore provision on restructured loans ICICI also carries a Rs 6,425 crore provision for Covid related exigencies. Batra said the bank will evaluate the extra provision every quarter. ICICI had written back Rs 1050 crore of Covid provision at the end of June 2021.