Backed by 53% credit growth in the overseas market as well as the domestic corporate sector, ICICI Bank has reported a 35% rise in its net at Rs 1,230 crore for the quarter ended December 31, 2007 as against Rs 910 crore net profit earned during the corresponding period last year.
However, the growth in retail and home loan advances of the country?s second largest bank has slowed down substantially, growing 12% and 13%, respectively.
However, according to Chanda Kochhar, joint managing director and chief financial officer, it is not only for ICICI Bank but an overall industry trend. Kochhar added interest rates were expected to remain stable for the next two months.
?Our net interest margin remained at 2.3% and the net interest income for the quarter increased 32% at Rs 1,960 crore as against Rs 1,485 crore in the third quarter of the last financial year. Our fee income increased 33% to Rs 1,785 crore during the third quarter of the current fiscal year as against Rs 1,345 crore fee income earned during the corresponding period last year,? Kochhar said.
?However, our unsecured lending in credit card and the personal loan segments rose from 10% as on December 31, 2006 to 17% during the quarter and the bank?s net non-performing assets increased from around 1% to 1.47% during the reporting quarter,? she said. She added this was because the proportion of personal loans and credit card was high in the total retail portfolio of the bank. However, she said there has not been any deterioration in credit quality.
ICICI Bank?s current and savings account deposits increased 33% at Rs 62,494 crore as on December 31, 2007 as against Rs 47,062 crore in the year-ago period, resulting in a 27% increase in the current and savings account (CASA) ratio as on December 31, 2007.
The bank?s total advances increased 25% to Rs 215,517 crore during the quarter as against Rs 172,763 crore recorded during the corresponding period of 2006-07
The bank?s international operations accounted for about 23% of its consolidated assets. As on December 31, 2007, ICICI Bank?s consolidated balance sheet was $115 billion.
ICICI Bank and ICICI Bank UK plans to raise around $6.7 billion in the international bond markets in dollar, euro and sterling currencies in the 2008 calendar year for financing expansion plans, including organic and inorganic growth internationally and large investment plans in India.
Kochhar added the bank had received approval for opening 400 new branches. While the bank is also looking to open a branch in the US, the focus will be on expansion in the existing geographies.
Referring to the bank?s exposure to US subprime crisis, she said the overall exposure is modest at $1.7 billion in a balance sheet size of over $100 billion. The bank has posted Rs 150 crore loss on that account which was considered before arriving at this quarter?s profits, she added.
Profit after tax for the nine-month period ending December 31, went up 32% to Rs 3,008 crore from Rs 2,285 crore for the nine-month period ended December 31, 2006. The capital adequacy of the bank was 15.8%, against the RBI-stipulated minimum capital adequacy of 9%.