Result Analysis: ICICI Bank Result Update Q4FY21


Particulars (In Cr.) Q4FY21 Q3FY21 Q4FY20 QoQ % YoY%
Interest earned 19,842 19,730 19,189 0.6% 3.4%
Interest Expended 9,411 9,817 10,262 -4.1% -8.3%
Net Interest Income 10,431 9,912 8,927 5.2% 16.9%
Operating Profit 8,540 8,820 7,390 -3.2% 15.6%
Provisions 2883 2742 5967 5.2% -51.7%
Net Profit after tax 4403 4940 1221 -10.9% 260.5%
Deposits 932522 874348 770969 6.7% 21.0%
Advances 733729 699017 645290 5.0% 13.7%
Slippages* 11818 471 5306 2409.1% 122.7%
Ratios (%) Q4FY21 Q3FY21 Q4FY20 QoQ (bps) YoY (bps)
Gross NPA 4.96 4.38 5.53 58 -57
Net NPA 1.14 0.63 1.41 51 -27
Provision Coverage Ratio 77.7 77.6 75.7 10 200
Net Interest Margin 3.84 3.67 3.87 17 -3
Capital Adequacy Ratio 19.12 18.04 16.11 108 301
CASA Ratio 42.5 41.8 42.3 70 20


Result Highlight: 

  • Net Interest Income in Q4FY21 grew by 16.9% YoY to Rs. 10,431 crores.
  • Net Interest Margin of the Bank increased by 17 bps to 3.84% QoQ in Q4FY21
  • Domestic loans grew by 17.7% YoY and 6.1% QoQ at Mar 31, 2021
  • The retail loan portfolio grew by 20% YoY and 7% QoQ in Q4FY21. Retail loans comprised 67% of the total loan portfolio at March 31, 2021.
  • Total Deposits grew at 21% YoY, out of which Current Account Deposit grew by 25.5% YoY, while Saving Bank Deposits grew by 16.7% YoY
  • Gross NPA ratio declined to 4.96% in Q4FY21 from to 5.42% on a proforma basis in Q3FY21.
  • Net non-performing asset (NPA) ratio declined to 1.14% in Q4FY21 from 1.26% (on proforma basis) in Q3FY21.
  • Provision coverage ratio improved to 77.7% from 75.7% at Mar’20
  • Covid-19 related Provision of 7475 Crore held at March 31, 2021 with additional Covid-19 related provision of ` 1000 Crore made in Q4-2021
  • *Gross NPA additions (slippages) are Rs. 5523 Crore (excluding proforma NPAs as of Dec 31, 2020) in Q4FY21.
  • Slippages were at 2.5% for FY21 against 2.45% in FY20.
  • The cost of deposits was 3.80% in Q4 compared to 3.97% in Q3.
  • Board has recommended a dividend of 2 Rupees per share for FY21

  Management commentary:

  • The Bank utilized the contingency provision of Rs. 3059 Crore held against proforma NPAs, as these loans have now been classified as per the RBI guidelines.
  • Credit card spends increased substantially in Q4 of 2021 over the previous quarter driven by spends across electronics, wellness and Jewellery categories.
  • As per the judgement of the Supreme Court, an estimated amount of Rs. 175 Crore of the required refund of interest on interest and related amounts accrued on loans during the moratorium period has been reduced from the interest income in Q4 of 2021 and its impact on net interest margin is about 6 basis points.
  • We see many opportunities in the medium term to grow the core operating profit in a risk-calibrated manner


ICICI Bank reported strong growth in Q4FY21 with Net Interest Income growth of 17% YoY, Operating Profit growth of 15.6% YoY and domestic loan growth of 17.7% YoY. Net Interest Margin of the Bank increased sequentially despite the impact of compound interest waiver on net interest margin is about 6 basis points. Decline in cost of deposits and reduction in overseas book helped Net Interest margin of the Bank to Improve. Asset quality of bank remains under control with controlled slippages (0.75% of Loans) and total restructuring at 0.5% of loans. Provision coverage ratio of the bank is remains best in the industry with strong CASA ratio. It has carrying significant provision COVID related Provision which provide buffer against a second wave of COVID. Thus, Investors can accumulate the stock at the CMP of Rs. 601 for the Target price of Rs.720 with 12 months’ time frame.

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