Net interest margins improved marginally by 1 bps from the preceding quarter to 3.32%, while on a year-on-year basis, NIMs improved by 25 bps. Domestic NIMs at the bank were at 3.67% and margins at the international branches were 1.7%.
ICICI Banks managing director & CEO Chanda Kochhar said the Reserve Bank of Indias 25-bps repo rate hike will not have an impact on the NIMs in the coming quarters. Our reliance on short-term funds is very low. Our funding really comprises stable Casa deposits and fixed deposits from the retail side. So, the market volatility does not impact (us) too much. Im expecting that our NIMs will remain stable for the next quarter, she said.
Restructured advances during the quarter stood at R1,776 crore. Kochhar said there was a restructuring pipeline of R3,000 crore and that concerns on asset quality persisted. The ICICI Bank scrip ended at R1,001.95, down 1.69%, at the end of the day on the Bombay Stock Exchange.
Operating profits increased 29% y-o-y to R4,439 crore while non-interest income increased 26% y-o-y to R2,801 crore. Asset quality deteriorated marginally and gross NPAs increased to R10,399 crore, up 6.51% y-o-y. As a percentage of gross advances, gross NPAs stood at 3.05%, down 3 bps from the preceding quarter. The net NPA ratio was, however, was up 9 bps to 0.94% sequentially. Kochhar said recoveries at the bank during the quarter were R356 crore while R500-crore worth loans were written off, mostly in the corporate and SME portfolios.
Provisions at the bank increased to R694.64 crore from R624.80 crore from the preceding quarter. Total advances increased 16% y-o-y to R3,32,632 crore of which retail loans formed 37%. Retail advances grew 22% y-o-y while corporate loan growth was 7% during the quarter. Kochhar added that the bank is continuing to calibrate the loan growth of its corporate portfolio; corporate loan growth in the September quarter was 11%.