Private sector lender ICICI Bank said on Saturday its profit in June quarter (Q1) stood at Rs 1,908 crore against a loss of Rs 120 crore in the year-on period due to healthy net interest income and improved asset quality.

In the previous quarter (January to March), it had reported a profit of Rs 969 crore.
Net interest income in Q1 FY20 grew by 26.8 per cent year-on-year to Rs 7,737 crore with healthy loan growth of 15 per cent. The year-on-year growth in domestic advances was 18 per cent.

Deposits increased by 21 per cent to Rs 6.6 lakh crore in April to June quarter with average CASA deposits growth of 12.3 per cent and term deposits growth of 34 per cent year-on-year.

The net interest margin was strong at 3.61 per cent in Q1FY20 as compared to 3.19 per cent seen in the previous year.

“We continued to leverage strong retail franchise, resulting in a 22 per cent year-on-year growth in the retail loan portfolio in Q1. Excluding non-performing and restructured loans, the growth in domestic corporate loans was about 13 per cent YoY,” ICICI Bank said in a statement.

Asset quality improved with gross non-performing assets (NPAs) as a percentage of gross advances declining to 6.49 per cent and net NPAs as a percentage of net advances falling to 1.77 per cent.

Significantly, provisions came down to Rs 3,496 crore in Q1 2020 compared to Rs 5,971 crore in Q1 2019.

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