ICICI Bank Q4 net rises 39%

Written by Banking Bureau | Mumbai, Apr 26 | Updated: Apr 27 2008, 07:05am hrs
The countrys largest private sector lender, ICICI Bank, which has recorded a 39% rise in its net profit to Rs 1,150 crore in Q4 2007-8, has made a total provisioning of Rs 680 crore towards mark-to-market losses on account of derivative trades for the last fiscal. The bank, which has a derivatives portfolio of $1.6 billion, has provided Rs 400 crore for this in Q4 2007-08.

The bank ended the fiscal year with net profit of Rs 4,158 crore, a rise of 34% and has increased its dividend by 10% to Rs 11 per share. It has also seen an increase of NPA from 1.47% to 1.49% in the fourth quarter of the last fiscal and total provisioning for 2007-08 is pegged at Rs 2,900 crore.

ICICI Bank joint MD and CFO Chanda Kochhar declined to divulge the magnitude and names of the clients that may have recorded MTM losses in their books.

Commenting on the interest rate scenario, Kochhar said, If no real tightening is done by the RBI on Tuesday, interest rates can remain were they are as there is enough liquidity in the system.

The bank, an active trader of derivatives contracts, is also in dispute with some clients who may have recorded losses after making wrong-way bets on currency movements, Kochhar said. However, the global credit market has shown improvement after March 31 and the bank has made notional recoveries to the tune of about Rs 64 crore owing to this, she said.

Consolidated advances of the bank and its overseas banking subsidiaries and ICICI Home Finance Company increased 19% to Rs 2,52,071 crore as on March 31, 2008 from Rs 211,660 crore as on March 31, 2007. Growth in retail loans slowed to 3% in the year, compared with a 30% gain in the previous 12 months.

The bank has maintained overall market share in retail credit despite premium pricing across the retail assets. Its savings deposit grew 36% from Rs 28,839 crore to Rs 39,089 crore during the year.

Vijaya Bank net up 9% at Rs 361crore

State-run Vijaya Bank reported a lower-than-expected net profit at Rs 361.26 crore for the financial year ended March 2008 on account of higher provisions for depreciation in the value of investments. However the bank has recorded a growth of 9.03% in net profit. The bank has provided a provision of Rs 272.12 crore during the quarter ended March 2008 due to marked to market diminution in the value of investments.

Canara Bank profit rises 10% to Rs 1,565 crore

Canara Bank expects its net interest margin would move up by 40-50 basis points during the current financial year ending March 2009, said MBN Rao, chairman and managing director of Canara Bank. For the fiscal 2007-08 the banks net interest margin was at 2.42%. Rao said the net profit of the bank for the fiscal ended March 2008 grown by 10.15% to Rs 1,565 crore from Rs 1,420.81 crore in the previous year. The banks deposits grew by Rs 11,691 crore to Rs 1,54,072 crore while advances (net) surged by Rs 8,732 crore to Rs 1,07,238 crore.