ICICI Bank reported a 36.2 per cent increase on annual basis in net profit during the quarter ended June 30, 2020.
This was on the back of stake sale in life and general insurance subsidiaries.. The private lender posted a net profit of Rs 2,559.15 crore in the quarter under review, as opposed to Rs 1,908.03 crore in the corresponding period last year.
Net interest income (NII), the difference between interest earned and interest expended, increased by 20 per cent year-on-year to Rs 9,280 crore in Q1 2021 from Rs 7,737 crore in Q1 FY20.
Net interest margin was 3.69 per cent in Q1 FY21 compared to 3.87 per cent in the March quarter last fiscal and 3.61 per cent in June quarter last fiscal.
This underlines the higher liquidity with the Bank due to strong deposit inflows and limited credit demand due to the lockdown, ICICI Bank said in its statement.
During Q1 FY21, ICICI Bank made provisions worth Rs 5,500 crore to protect the balance sheet from pressures due to economic implications of the pandemic. In total, the lender made provisions to the tune of Rs 7,594 crore during the quarter under review, as opposed to Rs 3,496 crore in the same quarter previous year.
ICICI Bank said its total deposits grew 21 per cent year-on-year to Rs 8.02 lakh crore during the June quarter of this fiscal.
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While increase in provisions by the bank may be seen as a prudent step it may also be construed that the coming times are going to be tough - because of the pandemic. For any bank non payment or delayed payment of loans is not good news .
To look at ICICI BANK presentations on Q1 - Fy 2021 results READ HERE
