ICICI Bank which once was trailing with losses and loss of image has posted a whopping 25 per cent profits of Rs 6,194 crore in the third quarter ending December 2021. Its net interest income rose by 23 per cent, to Rs 12,236 crore during the period, for which results were announced on Saturday, January 22.
It is not that the bank hasn’t made any provision for non-performing assets (NPA), which stood at Rs 4,018 crore, but this is surpassed by recoveries – Rs 4,200 crore. The bank has improved its recovery capacity and reduced the loan risk by avoiding political or otherwise pressures while issuing loans. This is the formula of success of any bank on the profits path.
ICICI Bank’s business loans rose by 39 per cent, a clean improvement while its lending to small and medium enterprises (SMEs) went up by 34 per cent. The Covid pandemic has seen spurt in SMEs as most of them came in healthy areas like digital expansion or green ventures. With these results, ICICI Bank stood in the league of profit making banks like HDFC.