Earlier today, lenders reported growth of 19 percent Net income Net interest income increased 16% and both indicators exceeded Street expectations.
The lender’s performance loan Not only quarterly deposits. Deposits increased 22% year-on-year and average checking deposits increased 27% year-on-year.
The main points from the profits of private banks are as follows.
More operating show than expected
ICICI Bank reported a 15% year-over-year increase in core operating profit for the December quarter, surpassing analysts’ expectations that pre-provisioning operating profit increased in the low single digits. This performance was supported by bank tightening of costs, as expenses increased by only 3.7% in the quarter.
Conservative NPA awareness policy
ICICI Bank has adopted a more conservative policy regarding the recognition of non-performing loans in loan books. This gives analysts more peace of mind in terms of asset quality. Due to the change in policy, the provision for advance payments equivalent to Rs has increased. According to the bank, the reserve for the loan balance for the December quarter was 209.6 billion rupees to match the revised policy.
Net NPA ratio is on the rise
ICICI Bank’s net non-performing asset ratio gradually shrunk to 0.63% on a reported basis, not taking into account the Supreme Court’s stagnation in recognizing non-performing loans, but increased 14 basis points from the previous quarter to 1.26%. ..
Fee income will surely recover sequentially
The COVID-19 pandemic has hit banks’ fee-based businesses, but ICICI Bank has seen 15% consecutive growth in its segment, reflecting increased customer spending, borrowing and investment activity. I reported that I did.
Strong mortgage growth is a good sign
Private sector lenders reported a 13% year-on-year increase in domestic loans and a 15% increase in retail loans this quarter. As of December 31, retail loans accounted for 65.6% of the total loan portfolio, the bank said. Growth in the domestic corporate portfolio increased by approximately 10% year-on-year due to payments to highly rated companies to meet working capital and capital investment requirements.
ICICI Bank: ICICI Bank Q3 Keys: The beat of the entire matrix, the conservative NPA policy should impress D-Street
https://economictimes.indiatimes.com/markets/stocks/news/icici-bank-q3-takeaways-beats-all-around-to-cheer-street-conservative-npa-policy/articleshow/80601653.cms ICICI Bank: ICICI Bank Q3 Keys: The beat of the entire matrix, the conservative NPA policy should impress D-Street