ICICI bank opened with a positive bias at Rs.681, going on to hit a new 52-week high at Rs.681.40. But profit booking at this price has pushed down the stock into the red, currently trading at Rs.675 levels.

The market is pretty happy with the Bank’s Q1FY22 earnings. Though its asset quality did some stress, the market reacted first to the 78% (YoY) jump in standalone net profit of Rs.4616 crore, mainly on the back of net interest income and lower provisions.

Its NII rose 18% at Rs.10.936 core while other income slumped 35% at Rs.3996 crore. In this, treasury income was Rs.290 crore v/s Rs.3763 crore, which included gains of Rs.3,036 crore from sale of shares of subsidiaries. Net interest margin (NIM) was 3.89% v/s 3.84% (QoQ) v/s 3.69% (YoY).

The provisions fell 62% to Rs.2,852 crore. The bank, based on its current assessment of the portfolio, wrote back Covid-19 provisions amounting to Rs.1,050 crore made in earlier periods.

On the Asset Quality front, Gross NPA rose to 5.15% v/s 4.96% (QoQ) and Net NPAs went up marginally from 1.14% to 1.16%.

As of June 30, 2021, the bank had restructured loans amounting to Rs.3,891crore under the RBI’s Resolution Framework of which Rs.925 crore was retail loans and Rs.2,956 crore was corporate loans.