ICICI Bank Stuns Everyone With Record 549% Increase In Profits In 90 Days!
From the last few sessions, the Indian stock market is trading flat as the Nifty shed 10.70 points or 0.09 percent at 11631.70 and the Sensex is down 4.92 points or 0.01 percent at 39609.15.
Considering the sectors, the banking space has outperformed with Bank Nifty adding over 2 percent led by IndusInd Bank, ICICI Bank and State Bank of India.
ICICI Bank Profit Gain
Amongst the peers, ICICI Bank has seen its net profit jump over six times for the September quarter.
The reason said to be a lower base in the year-ago period even as provisions rose.
If we talk about the whole private bank sector, it posted a standalone net profit of Rs 4,251.33 crore, which was Rs 654.96 crore in the same period of the previous year, a rise of 549 percent.
According to analysts, the record profit exceeded the estimates of a Rs 2,500-4,000 crore profit.
Last year, the profit was down in the corresponding period due to a one-time tax adjustment.
While the profits in the second quarter of the current fiscal were also boosted by a one-time gain.
Earlier, the bank sold equity shares representing 2 percent in ICICI Securities for a total consideration of Rs 309.83 crore during the second quarter of this fiscal.
This sale led to a net gain (after sale-related expenses) of Rs 305.01 crore.
Although, the provisions rose to Rs 2,995.27 crore against Rs 2,506.87 crore in the year-ago period while they were lower than Rs 7,593.95 crore in the preceding quarter.
What Does ICICI Bank Say?
While talking on the subject, the president of ICICI Bank Sandeep Batra said that the provisions made by the lender since March are more than adequate to cover any potential contingencies and during this quarter, ICICI Bank did not have to use the Covid-19 related provisions that were made.
He further added that the collection efficiency is now almost reached the pre-pandemic level.
On the subject of one-time restructuring, Batra mentioned some requests and the bank was not expecting a large number with the economy now showing signs of recovery.
Although, being cautioned they anticipate some Covid-19 related impact in the next two quarters through 2021-22 will be a “normalized year”.