The bank, which raised 150 billion rupees in August to bolster its capital ratios, set aside 29.95 billion rupees, nearly a third of 75.94 billion rupees of provisions in the previous quarter. ICICI Bank had pegged it at 25.07 billion rupees a year earlier. The gross bad loan ratio was also lower at 5.17%, compared with 5.46% at the end of June. Net interest income rose 16% from a year ago.
The lender did not make any additional provisioning for Covid-19 induced bad loans as it had “frontloaded” them in June quarter, said Sandeep Batra, President of ICICI Bank, adding that he expected a “more normalized” financial year starting April 1. Lower tax payout in the second quarter from a year earlier also helped the bottom line.
“We are focused on risk calibrated growth,” Batra said adding that the bank saw its highest ever home loan disbursements in September. “Covid related impact won’t be there next year as economic activity is coming back.”
If banks are making money it is because of demand for credit and a positive carry. If we look around the world, the only places where there is organic growth in the banking sector is in the emerging markets where demographics and a steep yield curve support their business model.Click HERE to subscribe to Fuller Treacy Money Back to top