ICICI Bank Ltd, India’s biggest private sector bank, reported a 14% year-on-year increase in consolidated profit after tax to Rs 3,232 crore (US$ 508 million) for the quarter ended June 30, 2015 (Q1-2016) from Rs 2,832 crore (US$ 445 million) for the quarter ended June 30, 2014 (Q1-2015).
Net interest margin improved to 3.54% in Q1-2016 from 3.40% in Q1-2015.
Standalone profit increased 12% year-on-year to Rs 2,976 crore (US$ 468 million) for Q1-2016 from Rs 2,655 crore (US$ 417 million), while retail advances increased 25% year-on-year.
ICICI Bank also reported a 14% year-on-year growth in savings account deposits and current and savings account (CASA) ratio at 44.1% at June 30, 2015.
Total advances increased by 15% year-on-year to Rs 399,738 crore (US$ 62.8 billion) at June 30, 2015 from Rs 347,067 crore (US$ 54.5 billion) at June 30, 2014. The year-on-year growth in domestic advances was 17%. The Bank has continued to see robust growth in its retail disbursements resulting in a year-on-year growth of 25% in the retail portfolio at June 30, 2015. The retail portfolio constituted about 43% of the loan portfolio of the Bank at June 30, 2015.
Deposit growth
The Bank has seen healthy trends in CASA deposit mobilisation. The Bank’s savings account deposits grew by 14% year-on-year at June 30, 2015. During Q1-2016, savings account deposits increased by Rs 1,905 crore (US$ 299 million). The Bank’s CASA ratio was at 44.1% at June 30, 2015 compared to 45.5% at March 31, 2015 and 43.0% at June 30, 2014. The average CASA ratio improved to 41.1% in Q1-2016 from 39.5% in Q1-2015 and 39.9% in Q4-2015. Total deposits increased by 10% year-on-year to Rs 367,877 crore (US$ 57.8 billion) at June 30, 2015. Total CASA deposits increased by 12% year-on-year to Rs 162,314 crore (US$ 25.5 billion) at June 30, 2015. At June 30, 2015, the Bank had a network of 4,052 branches and 12,811 ATMs.
Capital adequacy
The Bank’s capital adequacy at June 30, 2015 as per Reserve Bank of India’s guidelines on Basel III norms was 16.37% and Tier-1 capital adequacy was 12.26%, well above regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the Bank for June 30, 2015 do not include the profits for the quarter ended June 30, 2015. Including the profits for Q1-2016, the capital adequacy ratio for the Bank as per Basel III norms would have been 16.75% and the Tier I ratio would have been 12.64%.
Asset quality
Net non-performing assets at June 30, 2015 were Rs 6,402 crore (US$ 1,006 million) compared to Rs 6,325 crore (US$ 994 million) at March 31, 2015. The net non-performing asset ratio was 1.40% at June 30, 2015, the same level as at March 31, 2015. The Bank’s provision coverage ratio, computed in accordance with RBI guidelines, was 58.2% at June 30, 2015. Including cumulative prudential/technical write-offs, the provisioning coverage ratio
was 69.7%. Net loans to companies whose facilities have been restructured were Rs 12,604 crore (US$ 2.0 billion) at June 30, 2015 compared to Rs 11,017 crore (US$ 1.7 billion) at March 31, 2015.
The Bank’s digital mobile wallet – Pockets – has seen over 1.0 million downloads. The e-wallet is amongst India’s most comprehensive wallets which can be used to pay on all websites and mobile apps in the country.
The Bank has partnered with Alibaba.com for the launch of the Trade Facilitation Center, a single window facility to get quick access to an array of integrated business services from ICICI Bank.
Consolidated results
Consolidated profit after tax increased by 14% to Rs 3,232 crore (US$ 508 million) for Q1-2016 from Rs 2,832 crore (US$ 445 million) for Q1-2015. The consolidated return on equity was 15.0% in Q1-2016 compared to 14.6% in Q1-2015.
ICICI Prudential Life Insurance Company (ICICI Life) achieved a profit after tax of Rs 397 crore (US$ 62 million) for Q1-2016 compared to Rs 382 crore (US$ 60 million) for Q1-2015. The profit before tax of ICICI Life grew by 13% year-on-year in Q1-2016. ICICI Life maintained its leadership in the private sector. ICICI Life’s retail weighted received premium increased by 39% from Rs 607 crore (US$ 95 million) in Q1-2015 to Rs 843 crore (US$ 132 million) in Q1-2016. ICICI Life’s strong profitability has enabled it to wipe out its accumulated losses during the year ended March 31, 2015.
ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector. The gross written premium of ICICI General increased by 15% from Rs 1,847 crore (US$ 290 million) in Q1-2015 to Rs 2,122 crore (US$ 333 million) in Q1-2016. Profit after tax increased by 61% from Rs 72 crore (US$ 11 million) in Q1-2015 to Rs 116 crore (US$ 18 million) in Q1-2016.
