ICICI Bank Q4 takeaways: BB and below book drops 4%, Rs 1,000 crore Covid provisions & more

ICICI Bank Q4 takeaways: BB and below book drops 4%, Rs 1,000 crore Covid provisions & more [ad_1]

NEW DELHI: A lower-than-expected fall in quarterly provisions damage ‘s revenue development in March quarter, because the financial institution selected to make Rs 1,000 crore in Covid-19 associated provisions on a prudent foundation. A 17 per cent development in web curiosity revenue (NII) met market expectations whereas asset high quality improved compared with proforma non-performing belongings (NPA) of December quarter. Net curiosity margins had been secure for the quarter.

Here are the important thing takeaways from ICICI Bank’s Q4 outcomes

BB and below rated NPAs fall 4%

The financial institution mentioned its BB and below rated fund-based and non-fund primarily based excellent to debtors fell 4 per cent to Rs 13,098 crore as of March 31 in contrast with Rs 13,654 crore as of December 31. Recoveries and upgrades for the quarter got here in at Rs 2,560 crore. This excludes recoveries from proforma NPAs, write-offs and sale.

Mobile transactions up 61%

The financial institution mentioned the amount of cell banking transactions jumped 61 per cent within the March quarter. The worth of retailers buying transactions on UPI soared 149 per cent YoY, the lender mentioned in a BSE submitting. The financial institution mentioned it had a 37 per cent market share in digital toll collections by means of FASTag, with such collections rising 51 per cent YoY within the March quarter. Overall, digital channels like web, cell banking, PoS and others accounted for over 90 per cent of the financial savings account transactions in FY21.

Rs 1,000 cr in contemporary Covid provisions

ICICI Bank made Covid-related provisions price Rs 1,000 crore on a prudent foundation throughout the quarter. During the March quarter, the financial institution utilised contingency provision amounting to Rs 3,509 crore in the direction of proforma NPAs as of December 31, because the loans have now been categorised as per the RBI pointers. In the December quarter, the financial institution had utilised Rs 1,800 crore of Covid-related provisions made within the earlier durations. The financial institution mentioned it has Rs 7,475 crore as Covid-19 associated provisions as of March 31.

Retail mortgage development at 20% in Q4

ICICI’s retail mortgage portfolio rose 20 per cent YoY and 7 per cent QoQ within the March quarter. Retail loans comprised 67 per cent of the full mortgage portfolio at March 31, 2021. Including non-fund excellent, retail accounted for 55 per cent of the full portfolio. “Growth in the performing domestic corporate portfolio was about 13 per cent year-on-year driven by disbursements to higher rated corporates and public sector undertakings (PSUs) across various sectors to meet their working capital and capital expenditure requirements,” the financial institution mentioned.

Total advances jumped 14 per cent YoY to Rs 7,33,729 crore from Rs 6,45,290 crore within the year-ago quarter. Domestic advances for the quarter rose 18 per cent YoY and 6 per cent sequentially.

Rs 25 crore hit on rising yields

The financial institution mentioned it incurred Rs 25 crore in treasury loss throughout the fourth quarter on rise in yields on fastened revenue

and authorities securities. This is in opposition to a treasury revenue of Rs 242 crore in the identical quarter final 12 months.

PAT misses, NII meet expectations

A 261 per cent year-on-year (YoY) rise in web revenue at Rs 4,403 crore over year-ago’s Rs 1,221.40 crore revenue missed ET NOW ballot estimate of Rs 4,980 crore. Net curiosity revenue (NII) at Rs 10,431 crore, up 17 per cent over year-ago’s Rs 8,927 crore beat ET NOW ballot determine of Rs 10,306 crore.

Deposit grows at 21% in Q4

The financial institution mentioned its complete deposits jumped 21 per cent year-on-year to Rs 932,522 crore, with common present account deposits rising 34 per cent and common financial savings account deposits growing 21 per cent. Total time period deposits rose 18 per cent YoY to Rs 500,899 crore. The financial institution noticed 18 per cent development in time period deposits and 24 per cent YoY development in common present and financial savings account (CASA) deposits. Average CASA ratio stood at 42 per cent.

Provision protection ratio at 77%

Provision protection ratio for the quarter stood at 77 per cent for the quarter. Total capital adequacy ratio stood at of 19.12 per cent whereas Tier-1 capital adequacy ratio stood at 18.06 per cent on a standalone foundation.

Dividend introduced; no divestments in Q
4

The financial institution introduced a dividend of Rs 2 per share. This is after the RBI in a round of April 22 lifted freeze on dividend funds by industrial banks. Meanwhile, not like the final couple of quarters, the financial institution didn’t divest any stake in its subsidiaries within the March quarter. In the December quarter, the financial institution had offered

shares, representing 2.21 per cent within the firm. In September quarter, the financial institution had offered 2 per cent stake in ICICI Securities whereas in June quarter it had offered 3.96 per cent stake in ICICI Lombard, 1.5 per cent stake in ICICI Prudential Life. The stake gross sales helped the corporate log sturdy two-fold bounce in FY21 revenue at Rs 18,384.32 crore from Rs 9,566.31 crore in FY20.

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