ICICI Bank’s net interest income (NII) – or the difference between interest earned and interest paid – increased 16.24 per cent to Rs 9,366.09 crore in the quarter ended September 30, from ₹ 8,057.43 crore in the year-ago period.

Its net interest margin – a key measure profitability – stood at 3.57 per cent in the three months to September 30, lower than 3.69 per cent in the previous quarter and 3.64 per cent in the second quarter of financial year 2019-20.

ICICI Bank’s core operating profit – or profit before provisions and taxes – grew 18 per cent year-on-year to Rs 7,719 crore in the September quarter.

After the easing of coronavirus-related restrictions, there has been a substantial month-on-month increase in disbursements across retail products, ICICI Bank said.

Total income of the country’s second largest private sector lender rose to Rs 23,650.77 crore in the second quarter of current financial year, from ₹ 22,759.52 crore in the year-ago period, according to a regulatory filing.

ICICI Bank said its total deposits grew 20 per cent to ₹ 8,32,936 crore as of September 30 compared to the year-ago period, and retail loans increased 13 per cent. Domestic advances grew 10 per cent.

Auto loan disbursements continued to increase from June to reach pre-coronavirus levels in September, reflecting a rise in passenger car sales, it added.

The bank also said disbursements across its rural portfolio recovered to pre-Covid-19 levels in August and September.

The bank’s asset quality improved. Its gross non-performing assets – or bad loans – as a percentage of total loans reduced to 5.17 per cent in the three-months to September 30, 2020, from 5.46 per cent in the previous quarter, and 6.37 per cent in the second quarter of 2019-20.

Net non-performing assets came down to ₹ 7,187.51 crore, from ₹ 10,916.40 crore in the year-ago period.