ICICI Bank’s net profit rises to ₹1221.36Cr by 26% from last year

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ICICI Bank ;the largest private company of country, on Saturday reported 26% rise in its net profit at ₹1,221Cr for the quarter by March 31 2020. The lender’s net profit in year ago period was ₹969 Crore. The lender missed the average estimate of ₹3,510.50 crore made by 16 analysts. As for the report analysts expected ICICI Bank to report relatively healthy earnings despite some prudent provisioning.
Baically the net interest income increased by 17% to ₹8,927 Crore as against ₹7,620 crore in March 2019. The lender made higher provisions to the tune of ₹5,967crore, include the coronavirus related provisions of ₹2,725 crore. The lender’s provisions in the previous quarter were around ₹2,083 crore. As the bank said in its filing to stock exchanges – “The impact of the Covid-19 pandemic could result in fewer business opportunities, lower revenues, and an increase in the levels of non-performing assets and provisions, depending inter alia upon the period of time for which the pandemic extends, the remedial measures adopted by governments and central banks, and the time taken for economic activity to resume at normal levels after the pandemic”.

ICICI

The bank also told that its board appoved fundraising of upto $3 billion via issuance of bonds, notes, offshore certificates of deposits in overseas market over one year. The board as well as approved fundraising of upto ₹25,000 crore in domestic market through issuance of debt securities over one year. The core operating profit before provisions and tax excluding treasury income grew by 18 percent year-on-year to ₹7,148 Crore in the January to March quarter, as the bank told in a statement. ICICI Bank told that total advances increased by 10% year-on-year to ₹6.45 lakh crore at March 31, 2020, from ₹5.86 lakh crore at March 31, 2019. That menas apparently total deposits increased by 18% year-on-year to ₹7.7 lakh crore at March 31, 2020.
The bank’s total capital adequacy at March 31 as per the ‘Reserve Bank of India’s guidelines on Basel III norms i.e. including profits for FY20, was 16.11 percent and tier-1 capital adequacy was 14.72 percent compared to the minimum regulatory requirements of 11.08 percent and 9.08 percent respectively. The statement was – “The bank is well-capitalised and has a strong deposit franchise. The digital and technology platforms are key strengths of the bank and the present scenario provides an opportunity to re-engineer the delivery of banking”.

 

Also read:-Bajaj Auto reports zero Sales in Indian market due to COVID-19

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