ICICI Bank Q3FY22 performance is in-line with the expectations!

Looking at the share price movement, in the last one year, the stock price has rallied by 49.5%, jumping from Rs 538.10 on 25 January 2021 to Rs 804.60 as of 21 January 2022.

ICICI Bank Ltd, a leading private sector bank in India, that offers a diversified portfolio of financial products and services, announced its Q3FY22 results on Saturday.

Let’s take a look at the bank’s performance in Q3FY22.

The bank’s core operating profit went up by 25% YoY to Rs 10,060 crore in Q3FY22 from Rs 8,054 crore in the corresponding quarter last year. Net interest income (NII) increased by 23% YoY to Rs 12,236 crore leading to an expansion in net interest margin by 29 bps YoY to 3.96%.

Decent growth in average current account and savings account deposits led to a 16% YoY and 4% QoQ rise in the total deposits during the quarter, which stood at Rs 10,17,467 crore.

The total advances witnessed a surge of 16% YoY and 6% QoQ to Rs 813,992 crore. Profit after tax witnessed a sequential increase of 12.4% and 25% YoY to Rs 6,194 crore.

On the asset quality front, owing to a sequential decrease of 10% in net NPAs, the net NPA ratio improved to 0.85% from 0.99% in Q2FY22, which is the lowest since 31 March 2014.

The bank’s total capital adequacy as of 31 December 2021 stood at 19.79%, well above the regulatory requirement of 11.70%. It stands at a comfortable provision coverage ratio of 79.9%.

The bank has been consistently strengthening its digital capabilities to help transform itself. Speaking about its recent launches, in November 2021, the bank launched ‘TradeEmerge’ a one-stop platform for complete trade lifecycle, intended for importers and exporters across India, offering banking as well as value-added services.

The bank caters to the needs of retail, SME, and corporate customers. It has an extensive network of 5,298 branches and 13,846 ATMs as of 31 December 2021.

At 2.40 pm, the share price of ICICI Bank Ltd was trading at Rs 795.35, a decline of 1.15% from the previous week’s closing price of Rs 804.60 on BSE.