InvestorQ : What is your quick take on the ICICI Bank quarterly results announced on Saturday?
Archita Jajjoo made post

What is your quick take on the ICICI Bank quarterly results announced on Saturday?

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Niti Shenoi answered.
5 months ago
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For the quarter ended Jun-21, India’s second largest private bank by asset size, ICICI Bank reported 78% growth in net profit at Rs.4,616 crore. This was largely helped along the way by a 62% fall in provisioning for loan losses. The results were announced on Saturday so the markets are likely to react to the results only on Monday. But the concern is not so much on the business front but on the asset quality front due to COVID 2.0 lag effect.

For example, ICICI bank witnessed higher slippages in the retail loan book. This is despite the net interest income or NII moving up 18% at Rs.10,936 crore. Even as the NIMs of ICICI Bank continue to hover below 4%, it has shown a 20 bps growth at 3.89%. Provisions for Jun-21 quarter were lower at Rs.2,852 crore against Rs.7,594 crore in the Jun-20 quarter. During the quarter, ICICI Bank added Rs.3,604 to Gross NPAs with fresh slippages of Rs.6,700 crore in the retail loans book.

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