ICICI Bank Q2 net profit rises 13 pct at Rs 2,698 crore

Profit aside,ICICI Bank's total income increases to Rs 19,015.58 crore in Q2.

Written by PTI | Mumbai | Published:October 25, 2013 1:25 pm

ICICI Bank today reported 13 per cent rise in consolidated net profit at Rs 2,698 crore for Q2 (second quarter) ended September 30,2013.

The ICICI Bank’s net profit was Rs 2,390 crore in the same period last fiscal,ICICI Bank said in a statement.

ICICI Bank total income in the July-September period of the current fiscal increased to Rs 19,015.58 crore,from Rs 18,609.43 crore in the second quarter of 2012-13.

On standalone basis,ICICI Bank’s net profit rose by 20 per cent to Rs 2,352 crore as compared to Rs 1,956.11 crore in the same quarter of the previous fiscal.

The total income during the period under review was Rs 12,979.79 crore as against Rs 12,069.30 crore in the same period a year ago.

During the second quarter,the net interest income of the bank increased by 20 per cent to Rs 4,044 crore from Rs 3,371 crore in the same period a year ago.

The net interest margin (NIM) during the period rose to 3.31 per cent as compared to 3 per cent at the end of September 2012.

Provisions during the quarter were at Rs 625 crore as compared to Rs 508 crore in the same period of the previous fiscal.

The net non-performing asset (NPA) ratio of the bank rose to 0.85 per cent as compared to 0.78 per cent at the end of September 2012.

Total advances increased by 16 per cent to Rs 3,17,786 crore at the end of September 30,2013.

The bank has continued to see healthy growth in its retail disbursements,the statement said.

As a result,the outstanding mortgages and auto loan portfolios for the bank on a year-on-year basis have grown by 23 per cent and 27 per cent,respectively,on September 30,2013,it said.

Based on the above,it said,the bank has seen a 20 per cent rise in its total retail portfolio on September 30,2013.

During the first half of the current fiscal,ICICI Bank’s net profit on standalone basis rose by 22.64 per cent at Rs 4,626.26 crore as against Rs 3,771.16 crore in the same period a year ago.

The total income rose to Rs 25,884.7 crore in the first six month from Rs 23,494.87 crore in the same period a year ago.

On consolidated basis,the profit of the bank increased by 22 per cent to Rs 5,445 crore for the half year ended September 30,2013,from Rs 4,467 crore in the same period a year ago.

Shares of ICICI Bank were trading at Rs 1018.35,down 0.32 per cent intraday.

HIGHLIGHTS

* ICICI Bank Q2 net profit 23.5 bln rupees vs 21.9 bln analyst estimate

* Rise led by higher credit growth

* Sees retail book growing 22-23 pct in FY14 led by car,home loans

* Net interest margin at 3.31 pct vs 3.00 pct year earlier

* Raises FY14 net interest margin guidance to 3.3 pct

India’s top private sector bank ICICI bets on consumer loans; Q2 net beats estimates

(Reuters) – ICICI Bank Ltd,India’s largest private-sector lender by assets,is betting on consumer lending to help drive earnings growth this year after car and home loans helped it post over 20 percent profit gain for the third straight quarter.

ICICI is trying to emulate the success of rival HDFC Bank Ltd with a renewed push into consumer loans as corporate investment bears the brunt of economic slowdown as well as bureaucratic bottlenecks.

The bank’s retail book,or loans for cars,homes and credit cards,is likely to grow 22-23 percent in the financial year ending March compared with overall credit growth of 17-18 percent,CEO Chanda Kochhar told reporters after the company released earnings results on Friday.

Net profit rose to 23.5 billion rupees ($382.63 million) in July-September from a year earlier. That compared with a 21.9 billion rupees estimate of 23 analysts polled by Thomson Reuters.

Shares of ICICI,which the market values at $19 billion,ended 0.13 percent higher compared with the benchmark’s 0.2 percent decline.

“We are increasing our penetration in India. We added to our number of geographies from where we do home loans,from where we do auto loans,our branch network is also increasing,and all this will continue,” Kochhar said.

Car sales are projected to decline,but a wider branch network and strong dealership connections will help ICICI grow in the segment.

“Major growth for ICICI is coming from mortgages and autos. They are actually gaining back their lost market share,but they have a long way to go,” said Manish Ostwal,banking analyst with Mumbai-based brokerage KR Choksey.

Consumer lending in 2007 accounted for more than 65 percent of ICICI’s assets. It reduced that by almost half after the 2008/09 financial crisis intensified but has since changed track. Its corporate loan business grew just 11 percent in the quarter ended Sept. 30 compared with overall growth of 16 percent.

“Going forward,it will be important to see how they are able to maintain this (retail) growth and manage asset quality pressures,” said Jignesh Shial,banking analyst with Mumbai-based IDBI Capital.

Indian economic growth languished near its slowest in three years at 5.5 percent in the quarter that ended in June but was slightly better than expected,signalling the worst may be over for Asia’s third-largest economy.

Earlier this month,HDFC Bank ended its record of posting 30 percent on-year profit growth every quarter for the last decade due to investment losses and a squeezed net interest margin.

ICICI’s net interest margin,a gauge of profitability for banks,expanded to 3.31 percent during the quarter from 3.00 percent a year earlier. It raised its guidance for the fiscal year to about 3.3 percent.

Net interest income,or the difference between interest earned and paid,rose about 20 percent to 40.4 billion rupees.

Net non-performing loans,as a percentage of total assets,rose to 0.85 percent from 0.82 percent in the prior quarter. Debt restructuring,or steps to ease payment terms for stressed borrowers,grew 15 percent on quarter.

It has a debt restructuring pipeline of 20 billion rupees so far,Kochhar told reporters,adding asset quality pressures are likely to continue.

Prolonged economic slowdown is impairing borrowers’ ability to repay loans. Non-performing loans for Indian banks account for nearly 4 percent of total assets compared with a global average of 2.6 percent,according to Thomson Reuters Starmine. ($1 = 61.4175 Indian rupees)

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