Beating market expectations ICICI Bank, India’s second largest bank, posted a 31% year-on-year rise in net profit at Rs 1,902 crore for the quarter-ended March, helped by healthy growth in loans, interest income and other income.
Its profit was Rs 1,452 crore in the same period last year.
“We are targetting a growth of 20% on domestic loans and advances in the current fiscal, which will be spread across retail and corporate,” said Chanda Kochhar, managing director and chief executive officer, ICICI Bank. “For deposits, we are targetting 16-18%.”
For the full fiscal, the bank’s net profit showed a rise of 26% at R6,465 crore, against R5,151 crore in the previous fiscal.
Net interest income (the difference between interest earned and interest paid) grew by 24% to R3,105 crore during the quarter, driven by a healthy 17% growth in advances to R253,728 crore as of March 2012.
Non-interest income, which includes gains from treasury, fees and dividend from subsidiaries, increased by 36% to R2,228 crore during the quarter.
The bank also improved asset quality as non-performing asset decreased by 23% to R1,894 crore, and its net non-performing asset ratio decreased to 0.62% from 0.94% last year.
Shares of ICICI Bank closed at R861 crore, up 2% on Friday on the Bombay Stock Exchange.