On April 23, private sector creditor ICICI Bank reported net revenue growth of 59.4% YoY to Rs 7,018.7 crore for the quarter ended March, beating analysts’ estimates of Rs 6,450 crore.
The lender reported 20.8% year-on-year rise in net interest income of Rs 12,605 crore for the quarter, still beating the expectations of analysts.
The ATM board also approved a dividend of Rs 5 per share for the company.
Toplines growth shines
But the bottom line of the lender was also sustained by a sharp decrease in price. Provision in the reporting quarter fell 63% yoy to Rs 1,069 crore. Subserve fourth quarter included contingent subsidies of Rs 1,025 crore, placed on a conservative basis, ICICI Bank said.
The strong growth in interest rates lender's net income increased by 17% year-on-year. Analysts had expected private sector banks to show listed loan growth of 15-18% during the fourth quarter.
The free interest lender segment also posted strong growth, with sales rising 11% year over year to Rs 4,608 crore. Revenue from fees for the lender increased by 14% yoy to Rs 4,366 crore.
The bank reported a profit of Rs 129 crore in March, compared to a loss of Rs 25 crore in the fourth quarter of the previous year.
Operating display is stable
ICICI Bank continues to lead in terms of operations as its operating income before reserves increased by 19 percent year-on-year to Rs.10,164 crore, which is largely in line with analyst estimates.
The lender's net interest margin was 4 percent, compared to 3.84 percent in the previous quarter and 3.96 percent in the previous quarter.
Strong credit growth
Lending business posted growth across the board with retail, small business and wholesale lending posting double digit growth in the March quarter.
The lender's retail loan portfolio grew 20 percent year-over-year and 6 percent, respectively, and now stands at around 53 percent of the total loan book. Small businesses recorded a 34% increase in loans, while the wholesale loan portfolio grew by 10% compared to last year.
Asset quality improves
The asset quality of the private lender continued to improve as the Net Non-Performing Assets Ratio reached 0.76% in the March quarter compared to 0.85% in the previous quarter.
ICICI Bank saw its net NPA drop by 25 per cent YoY to Rs 6,961 crore. Meanwhile, total NPA revenue increased to Rs 4,204 crore in the reporting quarter from Rs 4,018 crore in the previous quarter. ICICI Bank said it continues to hold Rs 6,425 crore in COVID-19 related reserves as of March 31. On April 22, ICICI Bank shares fell 2 per cent to Rs 747 on the national exchange.
Also Read: Under pressure from shareholders, Twitter opens negotiations with Elon Musk