ICICI bank posted a healthy operating performance with core operating profits up 23% yoy, profits at Rs 4616cr grew by 78% yoy (inline with ET NOW poll expectations of Rs 4500cr). The net interest income growth was strong at 18% and the bank has improved NIMs to 3.89% vs. 3.84% in the previous quarter.

Asset quality showed limited stress in a tough environment. The overall Gross NPAs rose just 4.3% QOQ. Slippages rose to Rs 7231cr vs. Rs 5523 cr in the previous quarter. Most of the slippages came from retail book; retail slippages at Rs 6773cr, corporate & SME slippages Rs 458cr. BB below rated book (fund and non fund based) at Rs 13975cr vs. Rs 13098cr as of March 2021. Write back of Covid-19 provisions of ` 1050 cr made in earlier periods. Covid-19 related provision of ` 6425cr held at Jun 30, 2021.

Loan book growth has been healthy at about 20% led by retail loan book growth of about 20%. The share of retail loan book growth has grown to about 61% and share of corporate book now stands at about 24%. Deposit book growth has been healthy at 15.5% with average CASA ratio improving to 43.7% and the cost of deposits have fallen far below the 4% mark.

In an answer to ET NOW’s query at the press conference Sandeep Batra, ED, ICICI Bank said, most of the total slippages of Rs 7231 cr came from retail slippages and corporate book has behaved slightly better. We are pretty confident on the quality of the book and our approach is risk calibrated growth. Q1 recoveries stood at Rs 3600cr. There were certain NPAs that got added in BB below book that led to slight rise in the BB and below rated book to Rs 13975cr (Vs. Rs 13098cr in the previous quarter).

The bank has so far outperformed HDFC bank on both Net interest margins front and asset quality front.

ICICI Bank Highlights:

1. Healthy operating performance, NIMs expand to 3.89%
2. PAT at Rs 4616 cr vs Rs 2599cr, up 78% yoy
3. NII at Rs 10936cr vs Rs 9280cr, up 18% yoy
4. Core operating profit up 22.7%
5. Fee income growth at 53%
6. NIM at 3.89% vs 3.84% QOQ (vs 3.69% yoy)
7. Absolute gross NPAs at Rs 43148cr, rise 4.3% QOQ
8. Slippages at Rs 7231cr vs Rs 5523 cr QOQ
9. Most of the slippages came from retail book; retail slippages at 6773cr, corporate & SME slippages 458cr
10. BB & below rated book (fund and non fund based)at 13975cr vs 13098cr as of March 2021
11. Write back of Covid-19 provisions of Rs 1050 cr made in earlier periods
12. Covid-19 related provision of Rs 6425cr held at Jun 30, 2021
13. Loan growth at 19.6% led by retail book growth
14. Average CASA ratio improves to 43.7%.