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ICICI Bank’s Q1FY21 net profit rises 36% to Rs 2,599 cr

Private sector lending major ICICI Bank on Saturday reported a 36 per cent growth in standalone net profit of Rs 2,599 crore for the first quarter of 2020-21.

The bank had earned a net profit of Rs 1,908 crore for the corresponding period of the previous fiscal.

Similarly, net interest income (NII) increased by 20 per cent year-on-year t o Rs 9,280 crore in Q1FY21 from Rs 7,737 crore in Q1-2020.

“The net interest margin was 3.69 per cent in Q1-2021 compared to 3. 87 per cent in the quarter ended March 31, 2020 (Q4-2020) and 3.61 per cent in Q1-2020, reflecting the higher liquidity with the bank due to strong deposit inflows and limited credit demand due to the lockdown,” the company said in a statement.

The bank made provisions (excluding COVID-19 related provisions and provision for tax) declined by 42 per cent year-on-year to Rs 2,044 crore in Q1FY21 from Rs 3,496 crore in Q1-2020.

“The bank has made additional COVID-19 related provisions of Rs 5,550 crore on a prudent basis in Q1-2021 with the objective of completely cushi oning the balance sheet from the impact of Covid-19.”

Besides, the bank held COVID-19 related provisions amounting to Rs 8,275 crore as of June 30, 2020.

“This additional provision held by the bank is more than the requirement as per the RBI guideline dated April 17, 2020,”

“Net non-performing assets (NPA) decreased by 51 per cent from Rs 24,170 crore at June 30, 2018 to Rs 11,857 crore at June 30, 2019,” the statement said.

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