ICICI Bank’s quarterly results have shown high performance across all metrics. There has been a notable recovery in retail loan disbursements, owing to month-on-month increases across all retail products.
Sandeep Batra, ICICI Bank: Low interest rates, seamless onboarding experience led to the rise in retail disbursements.
ICICI Bank’s quarterly results have shown high performance across all metrics. There has been a notable recovery in retail loan disbursements, owing to month-on-month increases across all retail products.
“A combination of low-interest rates, seamless onboarding experience through process decongestion and digital sanctions led to the substantial rise in disbursements,” said Sandeep Batra, ICICI Bank President in a call with reporters on Saturday.
Retail loans comprised 65.8% of the bank’s total loan portfolio as of September 30th.
Mortgage disbursements crossed pre-Covid levels this quarter, with September experiencing an all-time monthly high. Disbursements across the rural portfolio also crossed pre-covid levels in August and September.
September even saw auto loan disbursements reach pre-covid levels, after a steady increase from June. This is indicative of a steady rise in car sales over the quarter. The overall retail loan portfolio grew by 13% year-on-year, with a 6% increase sequentially.
ICICI Bank had extended its Emergency Credit Line Guarantee Scheme to eligible MSME borrowers, based on a credit assessment. Sandeep Batra said, “approximately Rs 16,000 crore was sanctioned to over 187,000 borrowers, as of 28 October. The bank has already disbursed Rs 10,600 crore under this scheme.”
Credit Card Spends Recover, Deposit Flow Grows
In September, the bank onboarded 31% of credit card customers using video KYC facilities.
Credit card spends saw a recovery during this quarter. They returned to 85% of pre-covid levels in September, thanks in part due to a growth in expenditure on categories like health and wellness, electronics, and e-commerce, said Sandeep Batra
The Bank’s growth in retail loans is also in line with its deposit flow, which has been robust over the quarter. The liquidity coverage ratio stood at 150%, higher than the previous quarter, and an indicator of surplus liquidity. The quarter saw a growth in total deposits by 20% year-on-year to Rs. 8.3 trillion on September 30. Savings accounts deposits grew by 15% year-on-year, current account deposits by 21%, and term deposits by 26%.
Sandeep Batra on how ICICI Bank achieved the Highest-Ever Quarterly Profit
This quarter saw ICICI Bank report its highest ever quarterly profit, at Rs 4,251 crore. This is an increase of six-fold from Rs 655 crore in Q2-2020. The consolidated return on equity was at 14.2% for this quarter. The Bank also saw a 16% Y-o-Y increase in net interest income, with the net interest margin at 3.57% (a reduction when compared to Q1-2021 and Q2-2020).
The bank’s strong quarterly results were boosted by a strategy that values digital initiatives at its core. Speaking on the subject, Sandeep Batra stated, “We have continued to enhance our digital delivery with a range of new offerings and solutions.”
This is evident in features such as video KYC and WhatsApp banking. This technology has been a game-changer in the sector. According to ICICI Bank’s figures, 53% of personal loans and 74% of credit card customers were sourced through digital channels.
(This is a featured content)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Sandeep Batra ICICI Bank")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}