Asset quality deteriorated marginally during the quarter with gross non-performing asset (NPA) ratio moving up 2 bps to 3.05% sequentially, and the net NPA ratio rising 2 bps q-o-q to 0.99%. The percentage of net non-performing customer assets to net customer assets was 0.87%. Customer assets include advances and credit substitutes.
Restructured advances added in the three months were R1,394 crore, while the amount recovered was R400 crore. The ICICI Bank scrip closed at R1,473 on the BSE on Thursday, down 1.11%.
The country's largest private sector bank posted net interest income of Rs 4,492 crore, up 18% y-o-y, thanks to interest margins that rose 5 bps sequentially to 3.40%. Chanda Kochhar, managing director and CEO, said NIMs for the rest of the year would be in the region of 3.4-3.5%.
Non-interest income grew a healthy18% y-o-y to Rs 2,850 crore. "Of the total non-interest income, the fee income was Rs 1,936 crore -- an increase of about 8%. Treasury income was Rs 388 crore, which was a combination of all foreign exchange gains, equities and debt instruments. Then, there was Rs 416-crore dividend from our subsidiaries, which continue to generate very healthy profits," Kochhar said on a call with mediapersons.
Total advances at the bank increased 15% y-o-y to R3,47,067 crore. "Our retail portfolio has grown 26% on a y-o-y basis, with home loans clocking 25% and auto loans about 46%. We believe the retail segment will grow in excess of 20% this year, but we continue to adopt a calibrated approach to the corporate and SME portfolios; so, our domestic corporate portfolio grew 8%," Kochhar said. The bank's retail loans now constitute 40% of total loans and advances.
Total deposits increased 15% y-o-y to R3,35,767 crore and the Casa ratio stood at 43%. Saving deposits increased 16% y-o-y to Rs 1,02,736 crore, while current account deposits rose 13% y-o-y to R41,678 crore.
Expect retail growth to exceed 20% this fiscal
After ICICI Bank posted a 17% rise in net profit for the first quarter of this fiscal, Chanda Kochhar, the banks managing director and CEO, while speaking to the media said the bank believed that its growth in retail business would exceed 20% this fiscal. Here are some excerpts:
Youve said retail loan growth was healthy. Can you comment on that and the outlook on loan growth and asset quality
Overall growth in retail portfolio was 26%; within that, home loans grew about 25% and auto loans about 46%. There has been robust growth across all segments and, so, we continue to believe that the growth in retail business will be in excess of 20% for the whole year. While there is still some amount of restructuring to be done and there will be still some additions to NPAs this fiscal, overall I think the additions to NPAs and restructured loans would be lower than FY14.
At 8%, corporate loans have grown slow. When do you expect an uptick in the portfolio
Given the economic environment, weve been calibrating our corporate loan book. The domestic corporate book grew about 8%. Going forward, as the economy rebounds, first we will see requirements for working capital, and capital funding requirements for new projects will come in with a lag. As demand returns, we will, of course, grow the corporate loan book, but the demand for new projects is still a few quarters away.
You said your subsidiaries are doing well. Is ICICI Prudential Life Insurance looking to list on the stock exchange
We received R416 crore in dividends from our subsidiaries, which continue to generate healthy profits. In fact, the return on equity for the life insurance business is in excess of 20%. As far as listing the life insurance business is concerned, we are watching the progress on the increase in limit in foreign holding and thinking about how to monetise part of our holding. As of now, there are no immediate plans for a listing. But, over the medium term, we will look at some monetising options.
What is your strategy on the use of infra bonds
We just made an announcement two days ago. Its an issuance of R500 crore with a green-shoe option and is open. I think infra bonds for us are going to play an important role because. We have been large players in financing infrastructure projects and housing loans. Overall, we always look at pricing of loans based on overall cost of funding. So, I think it is premature to say what it will do to the overall cost of funding. fe Bureau