Our digital platforms are continuously evolving to offer value-added features to customers: Sandeep Bakhshi, ICICI Bank

ICICI Bank, India’s second largest private lender, reported the highest ever profit after tax of Rs 5,511 crore for the quarter ending September 2021, an increase of 30% as compared to the year-ago period.

Sandeep Bakhshi, ICICI Bank

Mumbai: ICICI Bank, India’s second largest private lender, reported the highest ever profit after tax of Rs 5,511 crore for the quarter ending September 2021, an increase of 30% as compared to the year-ago period.

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The core operating profit increased by 23.3% year-on-year and 10.6% sequentially to Rs. 95.18 billion in this quarter. The capital position of the Bank continued to be strong with a CET-1 ratio of 17.33% at September 30, 2021, including profits for H1 of 2022.

Sandeep Bakhshi, MD & CEO, ICICI Bank said during the analyst call, “We at ICICI Bank have continued to strengthen our franchise, delivery and servicing capabilities, with a range of digital initiatives. Our loan portfolio has performed well in the face of the challenges posed by the two waves of the pandemic, behaving either in line with or better than our expectations. We aim to create holistic value propositions for our customers through our 360-degree customer-centric approach and focus on opportunities across client and segment ecosystems.”

Digital initiatives

ICICI Bank’s iMobile Pay which offers payment and banking services to customers of any bank had about 15 lakh activations from non-ICICI Bank account holders in the current quarter, taking the total activations to 40 lakhs as of end-September. The Bank continues to expand the suite of services offered through iMobile Pay to achieve high engagement levels with users.

On the business banking side, the financial transactions on digital platform for businesses, InstaBIZ, and supply chain platforms have grown steadily in the past few quarters.

The value of financial transactions on InstaBIZ grew by about 80% year-on-year in Q2 of 2022. The Bank has onboarded about 200 corporate customers on our supply chain platforms. About 70% of the dealers of these customers are active on supply chain platforms. The value of transactions through these platforms increased 4.7 times year-on-year in Q2 of 2022.

The proportion of end-to-end digital sanctions and disbursements across various products has been increasing steadily. About 32% of the mortgage sanctions and 40% of personal loan disbursements, by volume, were end-to-end digital in H1 of 2022. About 95% of the overdraft facilities set up for business banking current account customers were end-to-end digital in H1 of 2022. 40% of asset and liability accounts opened during the quarter were through digital channels.

The Bank has created 19 industry specific STACKs which provide bespoke and purpose-based digital solutions to corporate clients and their ecosystems. The volume of transactions through these solutions grew 2.4 times year-on-year in Q2-2022.

“The Bank’s digital platforms are continuously evolving to enable best-in-class, end-to-end seamless digital journeys, offering personalized solutions and value-added features to customers. These platforms also enable Bank to acquire new customers through which we will continue to focus on delivering consistent and predictable returns to our shareholders”, said Sandeep Bakhshi.

Significant Growth in Deposits

Deposit growth continued to be robust, with total deposits growing at 17% y-o-y to Rs. 977,449 crore at September 30, 2021. Term deposits increased by 12% year-on-year to Rs. 526,745 crore.

The average current and savings account (CASA) deposits have grown by 28% y-o-y in Q2-2022; average CASA ratio stood at 44% in Q2-2022. The term deposits grew by 12% y-o-y to Rs. 526,745 crore at September 30, 2021.

Asset Quality

The net non-performing assets (NPA) at the Bank of India have declined by 12% sequentially to 0.99% at September 30, 2021, the lowest since December 2014. Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 5,482 crore in Q2-2022. The gross NPAs written off were Rs 1,717 crore. The Bank holds provisions amounting to about 1.3% of total advances against borrowers under resolution.

Loan Growth

With the increase in economic activity, disbursements across all retail products increased sequentially in Q2-2022. Disbursements of personal loans and auto loans were also close to Q4-2021 levels. The value of credit card spends grew by 47% sequentially in Q2-2022. The domestic loan portfolio grew by 19% year-on-year and 4% sequentially at September 30, 2021. Growth in the domestic wholesale banking portfolio was 14% year-on-year at September 30, 2021.

“ICICI Bank has continued to strengthen its franchise, delivery and servicing capabilities, with a range of digital initiatives, during the challenging period of the last 18 months; and our loan portfolio has performed well in the face of the challenges posed by the two waves of the pandemic, behaving in line with or better than our expectations,” Bakhshi added.

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