5 takeaways from ICICI Bank's latest quarterly results

The June 2021 quarter saw an all-round performance improvement, and the bank reported progress across its digital banking channels.
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Leading private sector bank ICICI Bank reported its financial performance for the first quarter of fiscal year 2022 (Q1-FY2022) on Saturday. The results boosted investor sentiments on Monday, taking the ICICI Bank stock to its 52-week, as well as lifetime, high of Rs 685.4 a share.

Here are some interesting takeaways from the quarter ended June 2021 (Q1-FY2022):

1. Profit grew 77.6 percent annually

ICICI Bank’s standalone profit of Rs 4,616 crore was 77.6 percent higher than a year ago, and 4.85 percent higher than the profit for the quarter ended March 2021.

The profit got this big boost because of reduced loan-loss provisioning in Q1-FY2022. At Rs 2,852 crore in the latest quarter, provisioning was 62.4 percent lower than Rs 7,594 crore in June 2020, and 1.1 percent lower than Rs 2,883 crore in March 2021.

2. Total income declined 6.4 percent annually

ICICI Bank's aggregate standalone income of Rs 24,379 crore for Q1-FY2022 was 1.78 percent higher than the Rs 23,953 crore in March 2021.

But, on an annual basis, Q1-FY2022 recorded a decline of over 6.4 percent from Rs 26,067 crore in June last year. It's noteworthy that there had been an exceptional boost factor in June last year, when ICICI Bank had sold equity shares in its subsidiaries, which helped it post a standalone net gain of Rs 3,036 crore.

3. Net NPA ratio marginally higher in June 2021

ICICI Bank’s net non-performing asset (Net NPA) ratio was 1.16 percent in June 2021, marginally higher than 1.14 percent reported in the March 2021 quarter.

Still, the bank’s provision coverage ratio (PCR)–which indicates the quantum of own funds parked aside by a bank to cover loan losses–at 78.2 percent was robust in Q1-FY2022, compared to 77.7 percent in the March 2021 quarter.

4. Digital banking witnesses boom

In December last year, ICICI Bank expanded its state-of-the-art mobile banking app, iMobile, to iMobile Pay with an aim to offer payment and banking-related services to customers of other banks.

Within six months, iMobile Pay recorded over 25 lakh activations by non-ICICI Bank account holders. In volume and value terms, transactions by non-ICICI Bank account holders grew eight and seven times respectively in Q1-FY2022, compared to the previous quarter.

In the Unified Payment Interface (UPI) space, ICICI Bank reported 32 percent sequential growth in Q1-FY2022 in the value of merchant acquiring transactions. Compared to a year ago, the transactions have more than doubled.

At Rs 3.49 lakh-crore at the end of June 2021, ICICI Bank reported an annual increase of 117 percent in the value of mobile banking transactions.

Digital channels accounted for over 90 percent of the savings account transactions in Q1-FY2022.

5. June sees new digital-product launches

During the June 2021 quarter, ICICI Bank launched a digital platform called Merchant Stack, targeting retailers, online businesses and large e-commerce. Merchant Stack offers range of banking and value-added services like digital current account opening, instant settlement of point-of-sale (POS) transactions, and instant overdraft facilities based on POS transactions.

In the latest quarter, ICICI Bank introduced ICICI STACK, a comprehensive set of digital banking solutions for corporates and their entire ecosystem of promoters, employees, dealers, and vendors. “These solutions enable corporates to seamlessly meet all banking requirements of their ecosystems in a frictionless manner,” ICICI Bank added.

Edited by Kunal Talgeri

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