Profit growth aided by higher other income at Rs 3,007 crore
India’s largest private sector lender, ICICI Bank, on Friday reported a standalone net profit of Rs 3,030 crore in the September quarter, an increase of 12% y-o-y. Profit growth was aided by higher other income at Rs 3,007 crore.
Net interest income — the difference between interest earned and expended — stood at Rs 5,251 crore in Q2 FY16, a rise of 13% from the year-ago period. On the margin front too, the bank saw an improvement as its net interest margin (NIM) rose 10 bps y-o-y to 3.52% .
Corporate credit grew 7% y-o-y, but retail assets, which constituted 44% of its loan portfolio as on September 30, saw a 25% y-o-y growth. This took its growth in domestic advances to 17% from the year-ago period. Chanda Kochhar, MD & CEO, ICICI Bank, said the lender expects to lower NPAs in FY16. “The fresh NPA addition in this quarter was Rs 1,300 crore and it is mainly coming from the corporates,” she said, adding that asset quality depends on the rate at which some of the existing projects start generating cashflows.
Asset quality of the lender slightly deteriorated and its gross non-performing loans as a percentage total loans rose 9 bps sequentially to 3.77%. The bank’s provisions were up 11% y-o-y to R942 crore in Q2FY16. Out of total slippages of Rs 1,300 crore in the September quarter, Rs 931 crore slipped from the restructured book, compared to Rs 292 crore in the June quarter this year.
“The retail consumer growth rate for the banking sector is about 17-18% and a market leader like us gains market share every quarter. We have always said we would grow higher that the market in the areas that we choose to grow and this is one of those markets,” she said.
Total deposits increased 9% y-o-y to Rs 3.84 lakh crore and the bank’s current accounts savings account (Casa) ratio stood at 45.1%.
Kochhar said there has been a robust growth in mobile banking transactions and the bank has 32% market share based on the value of mobile banking transactions in June and July 2015. “Currently about 61% of our total transactions of our savings account customers are done through internet and mobile. Less than 10% of the transactions are done through branches,” she said. The ICICI Bank scrip closed at R277 on Friday, up 2.04% from previous close.