Icon times
ICICI Bank Stock | Q4FY21 Results Analysis | Yadnya Investment Academy

ICICI Bank Stock | Q4FY21 Results Analysis | Yadnya Investment Academy

Published on 26 April 2021 Views 69 Comments 0

ICICI Bank announced its Q4FY21 results on Saturday 24th April 2021. Let’s have a short analysis of the quarterly results of the bank.

Introduction:

Private Lender ICICI Bank has posted decent figures in their Quarterly Result Announcement made on 24th April 2021. Bank has recorded a mammoth growth in its Net Profit of 260% on yearly basis to Rs. 4,403 Cr. Let’s look at other figures of the bank and analyze the performance of the Bank in the quarter ended 31st March 2021.

Q4FY21 Results:

  • Net Interest Margin (NIM) of the company has increased by 5.2% sequentially in Q4FY21 to Rs. 10,431 Cr. NIM has increased by 16.8% YoY, which was Rs. 8,927 Cr. in the same quarter of the FY20.
  • In the FY20, the Net Interest Income of the bank was at Rs. 33,267 Cr. which has grown by Rs. 5,722 Cr. and is at Rs. 38,989 Cr. in the FY21.
  • Non-Interest Income has gone down from Rs. 15,156 Cr. in FY20 to Rs. 13,923 Cr. in FY21, as the non-core banking business of the bank, was badly affected due to Covid-19 Pandemic. The same has increased from Rs. 3,921 Cr. to Rs. 4,137 Cr. QoQ in Q4FY21.
  • An increase in Non-Interest Income QoQ presents an improving condition in the banking operation of the bank.
  • Operating Expenses of ICICI bank have gone up by 3.6% YoY from Rs. 5,792 Cr. in Q4FY20 to Rs. 6,003 Cr. in Q4FY21. Sequentially, there is a rise in operating expenses too of 3.8%, it was Rs. 5,779 Cr. in Q3FY21. Operating Expenses for the FY21 was Rs. 21,561 Cr. which is almost to near the levels of FY21.
  • The Operating Profit of the bank has grown by a huge 29.52% from Rs. 28,101 Cr. in FY20 to Rs. 36,397 Cr. in FY21. The Operating Profit of the bank has reported growth of 3.2% and 15.6% QoQ and YoY respectively. The Operating Profit of the bank was Rs. 7,390 Cr. in Q4FY20, which now stands at Rs. 8,540 Cr.
  • Between the FY20-FY21, Bank net provision has increased from Rs. 2,161 Cr. which is at Rs. 16,214 in the FY21. The positive sign here is there is no alarming situation in these numbers, sequentially it has come down from Rs. 5,967 Cr. to Rs. 2,742 Cr. and to Rs. 2,883 Cr. in Q4FY20, Q3FY21, and Q4FY21 respectively.
  • In the whole financial year 2021, Covid-19 related Provision made by the bank amounts to Rs. 4,750 Cr.
  • Profit Before Tax (PBT) of the bank has grown negatively by almost 7% QoQ from Rs. 6,078 Cr. in December Quarter of FY21 to Rs. 5,657 Cr. in Q4FY21. Same has increased by a massive 297% YoY from Rs. 1,423 Cr. in the same quarter of the previous financial year.
  • The most important figure to look at in the quarterly result of ICICI Bank is its growth in Net Profit. The Net Profit of the bank was Rs. 1,221 Cr. in the quarter ended 31 March 2020, which has now grown with an impressive 260% YoY and stands at Rs. 4,403 Cr. in the quarter ended 31st March 2021. But, the same has gone down by Rs. 553 Cr. QoQ.
  • Also, Net Profit in the FY20 was Rs. 7,931 Cr which is now has increased and is at Rs. 16,193 Cr. in FY21.
  • Overall, ICICI Bank has posted a significant result on yearly basis, but Sequential Results don’t look much impressive.

 

Other Highlights- Q4FY21:

  • The Capital Adequacy Ratio of the Bank is at 19.12% as of March 31, 2021.
  • Gross NPA of the Bank stands at 4.96 in Q4FY21, it was 4.38% in Q3FY21 which shows that it has grown QoQ. It has come down from 5.53% in Q4FY20.
  • Another positive for the bank is the decrease in Net NPA to 1.14% QoQ in the quarter ended 31st March 2021. Net NPA was 1.26 in Q3FY21 and 1.41% in Q4FY20.
  • Bank has reported good deposit growth. Total Deposits have increased by 21% YoY to Rs. 9.32 Lakh Cr. at March 31, 2021, wherein Term Deposits have increased by 18% in the same period to Rs. 5 Lakh Cr., and hence which accounts for CASA deposit of Rs. 4.32 Lakh Cr.
  • Retail Loan Portfolio grew by 20% YoY and by 7% QoQ as of March 31, 2021.
  • 67% of the Total Loan Portfolio of the Bank accounts to Retail Loans shows the focus of Banks towards Retail side.
  • As of March 31, 2021, ICICI Bank is having 5,266 Branches and 14,136 ATMs.

Conclusion:

ICICI Bank has posted a decent figure in its Q4FY21 results. Overall, the Quarterly figures of the bank are a bit disappointing but the comparison of the Q4FY21 results on yearly basis looks good. In the current case, it looks like that there is a sign of improvement in the bank, but still, there are some concerns regarding previous wholesale/corporate loans.

Attachments
File Name
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

LATEST UPDATE

premium Premium
free Free
Read More

REPORTS


Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya