ICICI Bank tanks 5%

The private sector bank, for Q1FY21 reported good ser of earnings. The operational numbers were good as investment sale proceeds took care of the higher provisioning.

The Bank reported a 36% (YoY) jump in net profit at Rs.2599 crore while NII rose 20% at Rs.9280 crore. The jump in profit was mainly on account of one-off gains from the sale of equity stakes in its insurance companies last quarter - 3.96% stake in ICICI Lombard General Insurance and 1.50% in ICICI Prudential Life Insurance for a net gain of Rs 3,036 crore.

The additional Covid related provisions stood at Rs.5550 crore – this is over and above the Rs.2,525 crore provision made in March 2020, taking the total Covid related provision to Rs 8,275 crore. But if we exclude the Covid provisioning, it has actually come down 42% (YoY).

The net NPA ratio decreased from 1.41% to 1.23%  (QoQ), with provision coverage of 78.6%.

Its capital adequacy ratio was at 16.32% v/s the required 11.08%.

The market is not happy with this performance the stock price has tanked; it fell 5% to hit an intraday low at Rs.362 levels, around which it currently trades.