The country’s largest private sector lender, ICICI Bank, on Monday reported a net profit of Rs 2,922 crore in the March quarter, an increase of 10% y-o-y — its slowest quarterly growth in five years.

The net profit growth was largely aided by its non-interest income, up 17.47% in Q4 on a y-o-y basis to Rs 3,496 crore.

Net interest income, or the difference between interest earned and expended, stood at Rs 5,079 crore in Q4FY15, 17% higher than the same quarter of FY14. On the margin front, too, the bank saw an improvement with its net interest margin rising 15 bps y-o-y to 3.48%.

ICICI Bank’s corporate credit grew 10% on an annualised basis, but retail assets, which constituted 42% of its loan portfolio as on March 31, saw a 25% y-o-y growth. This took its growth in domestic advances to 18% from the same period last year.

Asset quality deteriorated and net non-performing loans as a percentage of net advances grew 34 bps sequentially to 1.61%. The bank’s provisions were up 88.2% y-o-y to Rs 1,344 crore in Q4 FY15.

“Going forward, we expect our credit growth to be around 2-4% higher than the system and, on that basis, we expect our domestic credit growth to be around 18-20% in FY16,” said ICICI Bank CEO & MD Chanda Kochhar.

Total deposits increased 9% y-o-y to Rs 3.61 lakh crore and the bank’s Casa ratio stood at 45.5%. The ICICI Bank scrip closed at Rs 302.40 on the BSE, down 1.85%.

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