ICICI Bank Q2 net up 22% at Rs 1503 cr on lower provisions

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ICICI Bank Q2 net up 22% at Rs 1503 cr on lower provisions

ICICI Bank’s second quarter (July-September) net profit rose to forecast-beating 19% year-on-year to Rs 1,503 crore on lower provisions as asset quality improved during the three month period. A CNBC result estimate predicted a profit growth of 16%.

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India's largest private sector lender ICICI Bank's second quarter (July-September) net profit rose to forecast-beating 22% year-on-year to Rs 1,503 crore on lower provisions as asset quality improved during the three month period. A CNBC result estimate predicted a profit growth of 16%.

"We have seen improvment in slippages and asset quality looks stable," said Chanda Kochhar, MD & CEO, ICICI Bank, addressing the electronic media.

"Provisions came down due to unsecured retail portfolio, which required high provisioning. We had already completed such provisioning. It is now a small part of our entire book. We are now concentrating on secured loans. Most of the loan growth comes from corproates. However, retail loans have seen some moderation."

Net non-performing asset (NPA) ratio stood at 0.80% as against 0.91% in the April-June quarter, suggesting an improvement in asset quality. Consequently, provisions (excluding tax) dropped nearly 30% to Rs 319 crore quarter-on-quarter. Its provision coverage ratio is at 78.2% as against 76.9% in the previous quarter.

The bank's loan book expanded 20% Y-o-Y to Rs 2.34 lakh crore. It aims to attain a credit growth of 18% for the full fiscal year. The net interest income or the difference between interest earned and expended, climbed nearly 14% Y-o-Y to Rs 2,506 crore. The net interest margin remained unchaged at 2.60%. Fee income rose 7% to Rs 1,700 crore. The Reserve Bank of India projected the over credit growth for the industry at 18% in FY12.

However, the growth in deposits were a bit muted at nearly 10% Y-o-Y to Rs 2.45 lakh crore, although the lender managed to increase the share of current account and savings account (CASA) to total deposits at 42.10% compared with 41.9% in the previous quarter. RBI's projected deposit growth is 16%.

During the quarter, consolidated net profit (inclusive of the bank's subsidiaries) shot up 43% Y-o-Y to Rs 1,992 crore.

ICICI Bank shares on Monday closed at Rs 931, a little chaged from its previous close on last Friday on the NSE.

saikat.das@network18online.com