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Journalism of Courage
ICICI Bank,India’s No.2 lender,reported a smaller-than-expected 13.4 per cent drop in quarterly net profit,as demand for retail loans helped offset the impact of a drop in treasury income.
ICICI said its October-December net profit fell to Rs 11.01 billion ($239 million) from Rs 12.72 billion a year earlier. A Reuters poll of analysts had forecast net profit of Rs 10.55 billion.
Indian banks were mostly insulated from the direct impact of the global credit crisis,but the world downturn hit the country harder than expected leading to a sharp slowdown in credit growth in the current financial year.
Demand for credit is expected to pick up in the near future,as improving business and consumer confidence brings back corporate,housing,auto and retail demand in Asia’s third-largest economy.
Shares in ICICI Bank,valued at $21 billion,fell 3 per cent in October-December,lagging a small gain in the sector index.
