India’s second-largest bank ICICI Bank on Monday posted a 31% year-on-year growth in net profit at R1,437 crore for the quarter ended December 2010 aided by interest income from strong credit growth.
The bank’s net interest income (the difference between interest earned and interest paid) grew 12% to R2,312 crore during the quarter, driven by healthy growth in advances. Advances of the bank increased by 15 % to R2,06,692 crore during the December quarter while fee income rose 14 % to Rs 1,625 crore.
“We expect a credit growth of around 18% next year,” said Chanda Kochhar, MD and chief executive officer, ICICI Bank.
The bank also improved asset quality as its net non-performing assets decreased by 34.9% to R2,873 crore as on December 31, 2010 against R4,416 crore.
“We kept tight control over the credit quality across all sectors,” said Kochhar, explaining the decline in non-performing assets of the bank.
Savings deposits increased by 26.5% to R64,577 crore on December 31, 2010 against R51,054 crore in the year-ago period and CASA (current account and saving account) ratio rose to 44% on December 31, 2010 from 39.6% last year.