The Hindu Business Line : ICICI Bank Q3 net jumps 33 pc

BUOYED by increase in margins and other income, ICICI Bank has registered a 33.2 per cent jump in net profit to Rs 440.10 crore for the third quarter ended December 31, 2003, up from Rs 330.30 crore in the corresponding period of the previous year.

Both the net interest margin from core banking business and other income rose by over 40 per cent. Net interest margin for Q3 was at Rs 485.01 crore (Rs 342.54 crore) and other income was at Rs 813.03 crore (Rs 567.82 crore).

Total income of the bank increased to Rs 3,004.71 crore (Rs 2,828.53 crore) and total expenditure decreased to Rs 2,352.02 crore (Rs 2,436.80 crore), said a press release from the bank.

However, the net profit for the third quarter of ICICI Bank and its subsidiaries is almost equivalent to the net profit of the standalone bank in the same period due to the net losses of one of the group companies, ICICI Prudential Life Insurance Company. The net profit of ICICI Bank and its subsidiaries for Q3 was at Rs 440.75 crore (Rs 308.96 crore).

ICICI Bank's retail assets increased 85 per cent to Rs 28,265 crore as compared to Rs 15,286 crore in December 2002.

The bank's deposits grew about 48 per cent to Rs 60,872 crore (Rs 41,000 crore) as the average cost of deposits decreased to 5.3 per cent (6.7 per cent).

The bank, which started application of the 90-day norm in terms of asset recognition, has a net NPA to net customer assets ratio of 4.7 per cent (4.9 per cent). In terms of value, net NPAs increased to Rs 3,180 crore in Dec '03, up from Rs 3,150 crore in March 2003.

Top-level changes

ICICI Bank has appointed two non-executive directors — Mr S.B. Mathur, Chairman, Life Insurance Corporation, and Mr Prem Watsa, Chairman & CEO of Fairfax Financial Holdings, the promoter of Lombard, which is a joint venture partner of ICICI.

Meanwhile, Ms Kalpana Morparia has been promoted to the post of Deputy Managing Director (DMD), said a spokesperson for the bank. The DMD's post had been lying vacant since two years after the retirement of Mr S.H. Bhojani.

Mr S. Mukherji, Executive Director, ICICI Bank, will now head the subsidiary of the group, I-Sec, the investment banking, stock broking and primary dealer arm, as its MD & CEO. His portfolio of project finance and special asset management will be divided between Ms Kalpana Morparia and Mr Nachiket Mor, Executive Director, ICICI Bank respectively.

Ms Lalita D Gupte, Joint Managing Director of the bank, was given an extension of her term up to October 2006. She was due to retire in June 2004.

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