ICICI Bank has made a whopping 261 per cent in net profit during the last quarter of the financial year 2020-21. During this period, the net profit of the bank increased to Rs 4,402 crore. In fact, this significant increase in net profit has been recorded due to a significant increase in interest income of the bank and decrease in provisioning.
Increase in interest income
There was an increase of 15.6 per cent in operating profit compared to the fourth quarter of its last financial year (2019-200). It increased to Rs 8540 crore during this period. During this period, interest income also increased by 5.24 per cent as compared to its previous period. It increased to Rs 10,431 crore as compared to the same period last year. During this time, the bank has reduced its provisioning and it has reduced to Rs 2,883 crore. However, the bank has made more than Rs 1000 crore in the March quarter under the provision of Kovid. By March 2021, the provisioning coverage ratio reached 77.7 percent.
NPAs also fall
The bank’s total NPAs declined to 4.96 per cent of the total advances at the end of March 2021, from 5.53 per cent as on March 31, 2020. Similarly net NPAs also declined from 1.41 per cent to 1.14 per cent. In this quarter, the bank had to make a provision of Rs 2883.47 crore for NPA. In the same period of the last financial year, the provision for this item was Rs 5,967.44 crore.
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