ICICI Bank was incorporated by erstwhile ICICI Ltd in 1994. In 2002, ICICI Ltd was merged with ICICI Bank. In August 2010, ICICI Bank acquired Bank of Rajasthan (BoR) which increased its presence in northern and western India. As on June 30, 2020, the bank has a network of 5266 branches and 14,136 ATMs which signifies its strong geographical presence.
Credit Rating-
ICICI Bank has been rated as AAA by CRISIL, ICRA and CARE. Additional Tier 1 bonds (Basel III) issued by ICICI Bank has been rated as AA+ by CRISIL, ICRA and CARE.
Financial performances during Q1FY22
- NII grew by 17.8% on yearly basis to Rs 109.36 billion
- PAT rose by 77.16% on Q-o-Q to Rs 46.16 billion
- NIM stood at 3.89%
- NNPA stood at 1.16% as of 30th June 21
- Capital adequacy came in at 18.71%
| Parameters(billion) | FY20 | FY21 | Q1FY22 |
|---|---|---|---|
| NII | 332.67 | 389.89 | 109.36 |
| Provision | 140.53 | 162.14 | 28.52 |
| PAT | 79.31 | 161.93 | 46.16 |
| GNPA(%) | 4.96 | 5.53 | 5.15 |
| NNPA(%) | 1.41 | 1.14 | 1.16 |
| CRAR(%) | 16.11 | 19.12 | 18.71 |
| NIM(%) | 3.73 | 3.69 | 3.89 |
| Provision Coverage ratio | 75.7 | 77.7 | 78.2 |
Leading Market Position-
ICICI Bank is among the largest private sector banks in India with a standalone asset base of Rs 12.30 trillion as of March 31, 2021. It is also one of the three banks that has been classified as 'Domestic Systemically Important Banks (D-SIBs)' by the Reserve Bank of India (RBI) indicating its significance to the overall financial system. The bank has experienced a leadership and management team that has been instrumental in establishing strong market position for the bank and its subsidiaries.
Steady profitability-
During FY21, NII grew by 17% on yearly basis. Net profit experienced a robust growth of 104% during FY21. Net Interest Margin (NIM) remained stable at 3.69% in FY21 as compared to 3.73% in previous year.
Healthy Capitalization-
ICICI Bank had a sizeable net worth of Rs 1475.06 billion with total capital adequacy ratio of 19.12% and Tier-1 capital adequacy ratio of 18.06% on a standalone basis as of March 31, 2021, which makes it a well-capitalized bank in India. The bank also has adequate flexibility to raise resources through the sale of stakes in subsidiaries. Given the bank's healthy cash accrual and ability to raise capital, it is likely to maintain healthy capitalization to support the overall credit risk profile of the bank.
Comfortable resource profile-
Resource profile remains healthy, supported by a high proportion of low-cost current account and savings account (CASA) deposits. The total deposit grew by 21% as of 31st March'21 on a yearly basis. Average current and savings account (CASA) deposits rose by 24% in Q4-2021 while average CASA ratio stood at 42% in Q4-2021.
Improving asset quality-
Gross NPA improved to 4.96% as of 31st March 2021 from 5.53% as of 31st March 2020. Consequently, Net non-performing asset (NPA) ratio declined to 1.14% as of March 31, 2021 from 1.26% as of December 31, 2020 and 1.41% at March 31, 2020. The bank's Provision coverage ratio was 77.7% as of March 31, 2021