{"id":9382,"date":"2020-07-26T08:25:25","date_gmt":"2020-07-26T08:25:25","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=9382"},"modified":"2020-07-26T08:25:25","modified_gmt":"2020-07-26T08:25:25","slug":"icici-bank-q1-results-stake-sales-help-report-36-rise-in-net-profit","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=9382","title":{"rendered":"ICICI Bank Q1 Results: Stake sales help report 36% rise in net profit"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2035168\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-871.jpg\" alt=\"The bank further plans to raise money from stake sale in its subsidiaries in the current financial year.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2035168\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-871.jpg\" alt=\"The bank further plans to raise money from stake sale in its subsidiaries in the current financial year.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2035168\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-871.jpg\" alt=\"The bank further plans to raise money from stake sale in its subsidiaries in the current financial year.\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/07\/1-871.jpg 660w, https:\/\/images.financialexpress.com\/2020\/07\/1-871-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/07\/1-871-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/07\/1-871-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/07\/1-871-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/07\/1-871-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/07\/1-871-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The bank further plans to raise money from stake sale in its subsidiaries in the current financial year.<\/span><\/figure>\n<\/div>\n<p>Private-sector lender <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/icici-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">ICICI Bank<\/a> on Saturday reported a 36% year-on-year (y-o-y) rise in its net profit at Rs 2,599 crore in the June quarter, despite an additional provisioning of Rs 5,550 crore following the Covid-19 pandemic. The bottom line was also cushioned by Rs 3,092 crore income from the stake sale in its subsidiaries. ICICI Bank had sold 3.96% stake in ICICI Lombard for Rs 2,250 crore and 1.5% stake in ICICI Prudential Life for Rs 840 crore during June quarter. The bank further plans to raise money from stake sale in its subsidiaries in the current financial year.<\/p>\n<p>Sandeep Batra, president, ICICI Bank, said the lender would sell around 4% stake in its subsidiary, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/icici-securities-ltd-stock-price\/\" rel=\"noopener noreferrer\">ICICI Securities<\/a>, in the current financial year. \u201cIn ICICI Securities, we have holding of around 79%, and we have to reach the 25% minimum threshold within a year. So, we will be required to sell about 4% stake in ICICI Securities,\u201d he said. He also said the bank would sell its stake in other subsidiaries such as ICICI Life Insurance and ICICI General Lombard, depending on any strategic opportunity.<\/p>\n<p>Total provisions of the bank more than doubled to Rs 7,594 crore, compared with Rs 3,496 crore in the same quarter last year. Currently, 17.5% customers have availed moratorium, compared to 30% in April 2020.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden alignnone size-full wp-image-2035174\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-872.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/p>\n<p><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden alignnone size-full wp-image-2035174\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-872.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2035174\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-872.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/07\/1-872.jpg 660w, https:\/\/images.financialexpress.com\/2020\/07\/1-872-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/07\/1-872-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/07\/1-872-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/07\/1-872-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/07\/1-872-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/07\/1-872-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><\/p>\n<p>Batra added that the objective of making higher provisioning was to completely cushion the balance sheet from Covid-19 shock.<\/p>\n<p>Rakesh Jha, group chief financial officer, specified that it did not mean there would be no provisions in the future. \u201cThe normal provisions will of course come in the future as well,\u201d he added.<\/p>\n<p>The bank\u2019s net interest income (NII) rose 20% y-o-y to Rs 9,280 crore, compared to Rs 7,737 crore in the same quarter last year. NII is the difference between interest earned and interest expended. The fee income for the bank stood at Rs 2,104 crore in June 2020, compared to Rs 3,039 crore to June 2019.<\/p>\n<p>Net interest margin (NIM) stood at 3.69% in the June quarter, down 18 basis points (bps) from 3.87% in the previous quarter. \u201cThe decline in NIMs was in line with the expectation of decline in margins, as guided by the management earlier,\u201d said Batra. It reflects the higher liquidity with the bank due to strong deposit inflows and limited credit demand due to the lockdown, the lender said in its release.<\/p>\n<p>Total advances at the bank grew 7% y-o-y to Rs 6.31 lakh crore, with retail assets registering 11% y-o-y growth in the June quarter. Total deposits increased by 21% y-o-y to Rs 8.01 lakh crore and the bank\u2019s current account savings account (CASA) ratio stood at 41%, down from 43.4% a year ago.<\/p>\n<p>ICICI Bank\u2019s gross non-performing assets (NPA) ratio at the end of the June quarter stood at 5.46%, down 7 bps from 5.53% at the end of March, while the net NPA ratio decreased 18 bps sequentially to 1.23 % from 1.41% as on March 2020. The fund-based and non-fund based outstanding to borrowers rated BB and below was Rs 17,110 crore compared to Rs 16,668 crore at March 31, 2020.<\/p>\n<p>The provision coverage on non-performing loans, excluding cumulative technical write-offs, increased to 78.6% at June 30, 2020, from 75.7% at March 31, 2020 .<\/p>\n<p>The bank\u2019s total capital adequacy at June 30, 2020 was 16.32% and tier-1 capital adequacy was 14.93% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively. The lender has already taken board approval to raise Rs 15,000 crore. The modalities of the capital raising will be decided after taking shareholders\u2019 approval at the annual general meeting to be held next month.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. 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Private-sector lender ICICI Bank on Saturday reported a 36% year-on-year (y-o-y) rise in its net profit at Rs 2,599 crore in the June quarter, despite an additional provisioning of Rs 5,550 crore [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9383,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-9382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/07\/1-871.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/9382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9382"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/9382\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/9383"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}