India's largest private sector lender ICICI Bank on Saturday reported a 158 percent year-on-year (YoY) jump in net profit at Rs 4,146.5 crore for the third quarter ended December 31 helped largely by the Essar Steel recovery and a jump in its core income.
In the corresponding quarter last year, the bank posted a net profit of Rs 1,604.9 crore. CNBC-TV18 Polls had predicted a profit of Rs 4,366.5 crore for the quarter under review.
The core operating profit (profit before provisions and tax, excluding treasury income) increased by 24 percent YoY to Rs 7,017 crore in the quarter ended December 31, 2019, from Rs 5,667 crore in the quarter ended December 31, 2018.
The net interest income (NII) increased by 24 percent YoY to Rs 8,545 crore in Q320 from Rs 6,875 crore in Q319. The net interest margin was 3.77 percent in Q320 compared 3.40 percent in Q319.
Non-interest income, excluding treasury income, was Rs 4,043 crore in Q320 compared to Rs 3,404 crore in Q319. Fee income grew by 17 percent YoY to Rs 3,596 crore in Q320 from Rs 3,062 crore in Q319.
Retail fees constituted 77 percent of total fees in Q320. Treasury income grew by 11 percent YoY to Rs 531 crore in Q320 from Rs 479 crore in Q319.
Provisions (excluding taxes) declined by 51 percent YoY to Rs 2,083 crore in Q320 from Rs 4,244 crore in Q319. On a standalone basis, the profit after tax was Rs 4,146 crore in Q320 compared to Rs 1,605 crore in Q319.
Total deposits increased by 18 percent YoY to Rs 716,345 crore on December 31, 2019. Average current and savings account (CASA) deposits increased by 15 percent YoY in Q320. The average CASA ratio was 42.8 percent in Q320 compared to 42.2 percent in Q220 and 46.0 percent in Q319.
Net non-performing assets (NPAs) decreased by 36 percent from Rs 16,252 crore at December 31, 2018, to Rs 10,389 crore at December 31, 2019. The net NPA ratio decreased from 2.58 percent at December 31, 2018, to 1.49 percent at December 31, 2019.
The provision coverage on non-performing loans, excluding cumulative technical write-offs, increased from 68.4 percent at December 31, 2018, to 76.2 percent at December 31, 2019. The provision coverage ratio on non-performing loans, including cumulative technical write-offs, was 85.7 percent at December 31, 2019, compared to 76.3 percent at December 31, 2018.
The bank had a network of 5,275 branches and 15,589 ATMs at December 31, 2019.
On Friday, shares of ICICI Bank ended at Rs 533.95, up by Rs 6.25, or 1.18 percent on the BSE.