ICICI Bank, India’s second largest private lender, saw an impressive 19.1% year-on-year growth in profit after tax to Rs. 4,940 crore in the quarter ended December 31, 2020. In its Q3 FY21 results announced on January 30, 2021, the Bank has also recorded an impressive 22% year-on-year growth in total deposits to Rs. 8,74,348 crore on December 31, 2020.
ICICI Bank, India’s second largest private lender, saw an impressive 19.1% year-on-year growth in profit after tax to Rs. 4,940 crore in the quarter ended December 31, 2020. In its Q3 FY21 results announced on January 30, 2021, the Bank has also recorded an impressive 22% year-on-year growth in total deposits to Rs. 8,74,348 crore on December 31, 2020.
Significant Growth in Deposits
The average current and savings account (CASA) deposits have grown by 19% with the average CASA ratio at 41.8% in Q3-2021.
“Our cost of deposits is among the lowest in the system. Our 360-degree customer coverage, digital platforms, and efforts towards process decongestion have played an important role in the growth of our deposit franchise”, said Mr. Sandeep Bakhshi, MD & CEO, ICICI Bank, while addressing analysts over a call.
The Bank has recorded a 16% year-on-year increase in average savings account deposits and a 27% year-on-year increase in average current account deposits in Q3-2021. The private lender also saw a 26% year-on-year increase in total term deposits to Rs. 4,78,932 crore on December 31, 2020.
Growth in Advances
In Q3 FY21, the Bank's total advances have seen a 10% year-on-year growth to Rs. 6,99,017 crore from Rs. 6,35,654 crore in Q3 FY20. The Bank has also recorded a 13% year-on-year growth in domestic advances and 7% sequentially in this quarter.
In Q3 FY21, the domestic loan portfolio has grown by 13% year-on-year, with the retail loan portfolio of the Bank growing by 15% year-on-year and 7% sequentially. Retail loans now comprise 65.6% of the total loan portfolio. There has also been a significant 10% growth in the performing domestic corporate portfolio, driven by disbursals to higher-rated corporates across various sectors, with some highly rated PSUs and large established corporate groups being the focus segments.
According to Mr. Sandeep Bakhshi, “The continued pickup in economic activity and tailwinds from the festive season combined with the Bank’s digital initiatives and extensive franchise reflected in an increase in disbursements across retail products during Q3-2021.”
There has been significant growth in mortgage disbursements in Q3-2021 compared to Q2-2021, with the figure reaching an all-time monthly high in December, owing to the Bank’s efforts to digitize loan applications, underwriting processes and instant loan approval initiatives. Auto loan disbursals have also increased in Q3 and have surpassed the pre-Covid levels in December.
The Bank witnessed an increase in credit card spends which has reached pre-Covid levels in December, as more and more customers spent in categories such as health and wellness, electronics, and e-commerce.
Provisions for Covid-19
As of Q3 FY21, the Bank holds an aggregate Covid-19 related provision of Rs. 9,984 crore. This also includes contingency provision for proforma NPAs amounting to Rs. 3,509 crore for loans not classified as non-performing pursuant to the Supreme Court’s interim order.
The Bank has also made provisions (excluding provision for tax) of Rs. 2,742 crore in Q3 FY21. During this quarter, the Bank has made contingency provisions that amount to Rs. 3,012 crore for borrower accounts not classified as non-performing pursuant to the interim order of the Supreme Court.
Growth in Core Operating Profit
The Sandeep Bakhshi led ICICI Bank saw a promising growth in core operating profit by 15% year-on-year to Rs. 8,054 crore in Q3-2021 -- a testament to the Bank’s sustainable growth in the face of the pandemic-related challenges in 2020 and the ongoing fallout.
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