India’s second-largest private sector bank, ICICI Bank Ltd (NS 🙂 announced its second quarter fiscal 2022 results on Saturday October 23, 2021. The share closed at Rs 758 on NSE on October 22, up 0.33% from its previous day is near. On that day, the script created its 52 week high of Rs 765.85. The stock delivered a solid return of 87.4% in one year, 43.7% year-to-date, 28.2% in six months, 4.9% in one month and 2.2% at year-to-date. over the past five days.
Results for the second quarter of fiscal 2022
In the second quarter, ICICI Bank’s consolidated basic operating profit (profit before provisions and taxes, excluding cash income) increased 23% year-on-year to Rs 9,518 crore from Rs 7,719 crore in the quarter ended September 30 2020. Its Net Interest Income (or NII), an important measure in the banking industry, increased 25% year-on-year to Rs 11,690 crore in the quarter, from Rs 9,366 crore in the second quarter of Fiscal 2021. Another key statistic, the net interest margin (or NIM) jumped to 4% as of September 30, 2021, from 3.57% in the corresponding quarter of fiscal 2021.
ICICI Bank’s non-interest income, excluding cash income, increased 26% year-on-year to Rs 4,400 crore in the quarter from Rs 3,486 crore in the second quarter of the fiscal year 2021. Its commission income increased 21% year-on-year to Rs 3,811 crore in the second quarter of FY2022, compared to Rs 3,139 crore in the comparable quarter of FY2021. Retail, corporate banking and SME customers grew 25% year-over-year and accounted for about 78% of the total. charges in the last published quarter. Revenue to the Treasury was Rs 397 crore in the quarter compared to Rs 542 crore in the second quarter of fiscal 2021. Revenue to the Treasury in the second quarter of last year included a gain of Rs 305 crore from the sale shares of ICICI Securities. As a result, adjusted cash income increased 67.5% year-on-year in the second quarter of fiscal 2022. Notably, ICICI Bank’s provisions (excluding tax provision) fell 9% year-on-year for reach Rs 2,714 crore in the July-September 2021 quarter, compared to Rs 2,995 crore in the second quarter of fiscal 2021. Profit before tax increased 37% year-on-year to Rs 7,201 crore in second quarter, compared to Rs 5,266 crore in the second quarter of fiscal 2021.
Credit growth and deposit growth
The retail loan portfolio grew 20% year-on-year and represented 62.1% of the total loan portfolio as of September 30, 2021. The commercial banking portfolio grew 43% year-on-year. The domestic wholesale banking portfolio grew 14% year-on-year. Domestic advances increased 19% year-on-year. Total advances increased 17% year-on-year to reach Rs 764,937 at the end of September 30, 2021.
The growth of deposits is a very important criterion to analyze the performance of a bank. Total deposits jumped 17% year-on-year to Rs 977,449 crore. In this, average current account deposits increased 36% year-on-year. Average deposits to savings accounts increased 25% from the September 2020 quarter. The bank saw 12% growth in total term deposits during the quarter to Rs 526,745 crore in the September quarter. 2021.
Asset quality at T2FY2022
ICICI Bank’s net non-performing assets fell 12% quarter-on-quarter to Rs 8,161 crore in the second quarter of fiscal 2022, from Rs 9,306 crore on June 30, 2021. The net NPA ratio declined to 0.99% in the quarter, from 1.16% on June 30, 2021. Gross NPA additions decreased to Rs 5,578 crore in T2FY2022 from Rs 7,231 crore in Q1FY2022. NPA recoveries and upgrades, excluding write-offs and sales, amounted to Rs 5,482 crore in the July-September 2021 quarter, compared to 3,627 crore in the first quarter of fiscal 2022 The bank’s total capital adequacy during the reported quarter was 19.52% and level-1 capital adequacy was 18.53% against the minimum regulatory requirements of 11.08% and 9.08% respectively.
Key takeaways from the second quarter of fiscal 2022 results
1.iMobile Pay, which provides payment and banking services to customers of any bank, recorded 1.5 million activations from non-ICICI bank account holders in the second quarter of the fiscal year 2022. The total of these activations was 4 million within nine months of launch.
2. Transactions by non-ICICI bank account holders in terms of value and volume respectively, were three times and 13 times higher in September 2021 compared to the September 2020 quarter and June 2021 quarter.
3. ICICI Bank (NS 🙂 has launched a facility that allows its account holder savings to manage any bank’s credit card dues through iMobile Pay.
4. The Bank has also launched a contactless payment facility on iMobile Pay which allows Android smartphone users to make credit and debit card payments at point-of-sale terminals.
5. The value of financial transactions on InstaBIZ increased by approximately 80% year over year during the second quarter of fiscal 2022.
6. The value of mobile banking transactions increased 62% year-on-year to Rs 406,501 crore in the second quarter of fiscal 2022.
In the September 2021 quarter, although FIIs slightly decreased their holdings in the bank, mutual funds and DIIs increased their holdings slightly. The action looks good based on major technical indicators such as RSI, MACD and EMA 20 days / 50 days / 100 days / 200 days.