ICICI Bank Ltd, India’s biggest private sector lender by assets, beat analyst estimates with a 10 percent increase in quarterly net profit, but reported a worsening of asset quality, with the share of bad loans rising.
Indian banks have been hurt by two years of slower economic growth that led to projects being stalled and corporate balance sheets getting stretched. Demand for loans from companies has yet to pick up, although consumer loans are growing fast.
ICICI Bank, which is also listed in New York, said net profit rose to 29.22 billion rupees ($458.9 million) for its fiscal fourth quarter to end-March, from 26.52 billion rupees a year earlier.
Analysts on average had expected the lender to report a net profit of 28.65 billion rupees.
Gross bad loans ratio increased to 3.78 percent in the March quarter, compared with 3.40 percent in the third quarter. The bank’s provisions for bad loans jumped 88 percent from a year earlier, to 13.45 billion rupees.
Net interest income, the difference between interest earned and paid, grew 17 percent on year in the March quarter to 50.79 billion rupees. Retail loans grew 25 percent annually, faster than an 18 percent growth in total credit demand for the bank.
ICICI Bank shares were trading down 2 percent after the results, while the Mumbai market index was down 0.9 percent.
($1=63.6700 Indian rupees)
ICICI Bank Q4 net profit rises 10.2% to Rs 2,922 crore
(PTI) Country’s largest private sector lender ICICI Bank today registered 10.2 per cent rise in its net profit at Rs 2,922 crore for the fourth quarter ended March 2015 on the back of higher interest income.
The bank’s net profit in the corresponding quarter of the previous fiscal stood at Rs 2,652.01 crore, ICICI Bank said in a filing to the BSE.
“Standalone profit after tax (or net profit) increased by 10 per cent to Rs 2,922 crore (USD 468 million) for the quarter ended March 31, 2015 from Rs 2,652 crore (USD 424 million) for the quarter ended March 31, 2014.”
The bank’s net interest income increased 17 per cent to Rs 5,079 crore (USD 813 million) in fourth quarter of 2015 from Rs 2,976 crore (USD 476 million) in the corresponding quarter of 2014.
The net interest margin (NIM) in the fourth quarter stood at 3.57 per cent.
Total income increased from Rs 14,465.34 crore for the quarter ended March 31, 2014 to Rs 16,234.73 crore for the quarter ended March 31, 2015, it said.
On the asset quality front, the gross non-performing assets (NPA) or bad loans rose to 3.78 per cent of the gross advances during the last quarter, from 3.03 per cent in the similar quarter of previous fiscal.
Also, net NPAs grew to 1.61 per cent of net advances, over 0.97 per cent in the year-ago period.
For the year ended March 2014-15, the bank’s net profit stood at Rs 11,175.35 crore as compared to Rs 9,810.48 crore a year ago.
Total income increased from Rs 54,606.02 crore for the year ended March 2014 to Rs 61,267.27 crore for the year ended March 2015.
On a consolidated basis, the group posted a net profit of Rs 3,084.92 crore for the quarter under review as compared to Rs 2,724.26 crore for the corresponding quarter.
Total income increased from Rs 21,652.96 crore for the quarter ended March 2014 to Rs 24,914.26 crore for the quarter ended March 2015.
ICICI Bank shares closed 0.96 per cent down at Rs 305.15 apiece on the BSE.