10 pct rise in non-interest income pushes ICICI Bank net up 14 pct

By: | Published: January 31, 2015 12:30 AM

Largest private sector lender ICICI Bank on Friday reported a net profit of Rs 3,265 crore in the December...

Largest private sector lender ICICI Bank on Friday reported a net profit of Rs 3,265 crore in the December quarter, an increase of 14% from Rs 2,872 crore in the same period last year. Bank’s net profit growth was aided by a healthy growth in its non-interest income, which was up 10.3% y-o-y to Rs 3,091 crore.

Net interest income stood at Rs 4,812 crore in the quarter, 13% more than Rs 4,255 crore reported in the same period last year. On the margin front too, the bank saw an improvement with its net interest margin (NIM) rising 14 basis points (bps) to 3.46% y-o-y.

Corporate credit grew 4% y-o-y, falling from 5% it reported in Q2 FY15. However, retail assets, which constituted 41% of loan portfolio as of December 31, saw a 26% y-o-y growth. This took its growth in the domestic advances to 16% y-o-y.

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ICICI Bank MD and CEO Chanda Kochhar said the positive impact on the asset quality for the banking sector generally comes with a lag with respect to what is happening in the economy.

“In the economy, we have already begun seeing the right steps so I am optimistic that whatever steps the govt has taken so far are positive and will lead to better GDP growth in the coming quarters. This will translate into an improvement in the cashflow of the corporates and an improvement of bank’s asset quality,” she added.

However, she said that an improvement in the asset quality is expected in next two to three quarters.

Asset quality deteriorated and net non-performing loans as a percentage of net advances grew 18 bps sequentially and 33 bps y-o-y to 1.27%. The bank’s provisions were up 41% y-o-y to Rs 979 crore in Q3 FY15.

The lender saw slippages of Rs 2,279 crore in the quarter, of which Rs 776 crore were due to slippages from restructured assets. Total deposits in increased 12% y-o-y to Rs 3.55 lakh crore and the current accounts savings account (Casa) ratio stood at 44%.

ICICI Bank shares on BSE closed at Rs 361.15 on Friday, down 4.95% from its previous close.

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