ICICI Bank Ltd, India’s second largest private lender, has improved its position by two notches in a ranking of banks in the Asia-Pacific region based on market capitalization. The bank, which was ranked 17th in the list of top 20 banks in the first quarter of 2020, has been ranked the 15th in the first quarter of 2021. The improvement in position comes against the backdrop of economic recovery from the covid-19 pandemic across the region.
HDFC Bank, India’s largest private lender in terms of asset size, ranks 7th in the top-10 list for the first quarter of 2021, the same as last year, with a rise of 4.9% in its market capitalization on a quarter-on-quarter basis to $112.55 billion, according to S&P data. ICICI Bank’s market capitalization rose 8.97% to $55.03 billion.
ICICI Bank has substantially increased its provision coverage ratio to 86% and carries unutilized covid-related provisions of Rs6,470 crore. It is well-cushioned with higher provisions on its balance sheet and has guided for normalization of credit cost from FY22.
Also Read | How India’s banking model has changed
The bank continues to see strong growth in retail deposits. It has one of the lowest funding costs among private banks, enabling it to underwrite a profitable business without taking undue balance sheet risks.
The retail mix remains healthy, with current account savings account (CASA) ratio of 45.2%, retail contribution-to-fees at 78%, and increase in loan mix to 66%. ICICI Bank is firmly positioned to deliver healthy sustainable growth, led by focus on core operating performance.
ICICI Bank reported 19% increase in net profit to Rs4,940 crore for the quarter ending 31 December 2020, against Rs4,146 crore for the same quarter a year ago. Whereas, HDFC Bank reported 18.1% increase in net profit to Rs8,758.29 crore for the quarter ended 31 December 2021 against Rs7,416.48 crore in the year-ago period.
In May, ICICI Bank raised up to Rs25,000 crore by issuing debt securities, including non-convertible debentures (NCDs), in domestic markets on a private placement basis.
For Jan-Mar quarter, shares of ICICI Bank gained 8.69% against a rise of 3.68% in the benchmark index, Sensex. While HDFC Bank advanced 3.95% in the same period.