ICICI Bank beats Street, net profit up 36% at Rs 1,815 cr
Beating market expectations, India’s second-largest private sector bank ICICI Bank on Friday posted a 36% year-on-year rise in net profit at Rs 1,815 crore during the April-June quarter against Rs 1,332 crore a year ago on the back of healthy growth in loans and interest income.india Updated: Jul 28, 2012 17:28 IST
Net interest income (the difference between interest earned and interest paid) grew by 32% at Rs 3,193 crore during the quarter compared to Rs 2,411 crore in the same period of the previous fiscal year.
Advances increased by 22% to Rs 268,430 crore at the end of June 30, 2012 against Rs 220,693 crore at the end of June 30, 2011.
Non-interest income, including gains from treasury, fees and dividend from subsidiary, increased by 14% to Rs 1,880 crore.
The bank was able to widen its net interest margin (NIM) by 0.4% to 3.0% over the same period last year, boosting bottomline.
The bank also improved its asset quality as non-performing asset decreased by 17% to Rs 1,941 crore at end of June 30, 2012 against Rs 2,351 crore at the end of June 30, 2011.
Net non-performing asset ratio decreased to 0.6% at the end of June 30, 2012 from 0.91% at the end of June 30, 2011.
“ICICI bank has reported better numbers than our expectations on back of healthy NIM and stable credit costs,” said Saday Sinha, banking analyst, Kotak Securities. “The bank has continued to demonstrate its ability to manage the credit cycle in an uncertain macro-environment, which gives us comfort in retaining the stock as one of our preferred picks in the banking space.”
Investors cheered the result as shares of the company closed up 2% at Rs 928 on the Bombay Stock Exchange on Friday.