The private lender had reported a profit of Rs 655 crore in the year ago quarter.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 16 per cent to Rs 9,366 crore from Rs 8,077 crore in the year-ago quarter.
Net interest margin (NIM) for the quarter stood at 3.57 per cent compared with 3.69 per cent in the June quarter and 3.64 per cent in the year-ago quarter. It reflects surplus liquidity with the bank, ICICI Bank said.
This latest figures included provisions of Rs 497 crore made on a prudent basis on loans aggregating to Rs 1,410 crore that were not classified as non-performing pursuant to the Supreme Court’s interim order.
The SC had earlier directed that accounts that were not classified as non-performing till August 31, 2020, should not be classified as non-performing until further orders. The bank said it held Covid-related provisions worth Rs 8,772 crore as of September 30.
Asset quality improved, with net non-performing assets (NPAs) falling to 1 per cent of gross advances from 1.23 per cent in June quarter and 1.60 per cent in the year-ago quarter.
Gross NPAs for the quarter stood at 5.17 per cent from 5.46 per cent in June quarter and 6.37 per cent in the year-ago quarter. Gross NPAs would have been 5.36 per cent if the SC instructions were not in place.
Provision coverage ratio stood at 81.5 per cent at the end of September quarter compared with 78.6 per cent at the end of June quarter.
During the quarter, the bank’s total deposits grew 20 per cent YoY to Rs 8,32,936 crore. Domestic loans growth stood at 10 per cent YoY, with growth in retail loans at 13 per cent YoY. The bank said its board of directors have approved the proposal for seeking approval from RBI for the re-appointment of Sandeep Bakhshi as the Managing Director & CEO of the bank from October 15, 2021 up to October 3, 2023.
“Post the easing of restrictions, there has been a substantial month-on-month increase in disbursements across retail products. Mortgage disbursements crossed pre-Covid levels and reached an all-time monthly high in September. Auto loan disbursements have continued to increase from June and have reached pre-Covid levels in September, reflecting the rise in passenger car sales. Disbursements across the rural portfolio have crossed pre-Covid levels in the months of August and September 2020,” the bank said.
“Credit card spends recovered to about 85 per cent of pre-Covid levels in September 2020, led by increased spends in categories such as health & wellness, electronics and e-commerce,” the bank said.
For the quarter, the bank’s non-interest income, excluding treasury income, stood at Rs 3,486 crore compared with Rs 3,854 crore YoY. Fee income fell to Rs 3,139 crore from Rs 3,478 crore YoY. That said, fee income was up 49 per cent sequentially, reflecting the increase in customer spending, borrowing and investment activity.
The private lender said that retail fees accounted for 76 per cent of total fees during the quarter.
Meanwhile, treasury income for the bank came in at Rs 542 crore compared with Rs 341 crore YoY. This included Rs 305 crore raised by the bank by selling 2 per cent stake in ICICI Securities during the quarter.