ICICI Bank Q1 net up 25%; meets forecast
ICICI Bank Ltd, India's 2nd largest lender by assets, today posted a 25.3 % increase in Q1 net profit, in line with estimates, led by higher loan growth and income from fees and commissions.business Updated: Jul 31, 2013 13:14 IST
ICICI Bank Ltd, India's second largest lender by assets, posted on Wednesday a 25.3 % increase in first-quarter net profit, in line with estimates, led by higher loan growth and income from fees and commissions.
The bank posted a net profit of Rs 22.7 billion ($376.7 million) for the April-June quarter, compared with Rs 18.2 billion a year earlier.
Net interest income rose 19.6 % to nearly Rs 38.2 billion.
Analysts, on average, had estimated a net profit of 22.4 billion rupees, according to Thomson Reuters.
Net interest margin, a key gauge of profitability for banks, stood at 3.27 % for the quarter-ended June compared with 3.01 % a year ago, ICICI said in a statement.
Asset quality at the bank worsened slightly, with net non-performing loans at 0.82 % of its total assets compared with 0.71 % a year earlier. Provisions for bad loans and contingencies rose 27 % to 5.93 billion rupees.
Rival Axis Bank has already posted a better-than-expected 22.5 % growth in net profit with a marginal increase in bad loans. Non-performing loans at No. 3 lender HDFC Bank also ticked up in the June quarter.