The Hindu Business Line : Retail lending pushes ICICI Bank net up 24%

ICICI Bank has reported a 24 per cent increase in net profit for the third quarter ended December 31, 2005, driven by increased retail lending, higher net interest income, and higher fee income.

Net profit for the quarter rose to Rs 640 crore from Rs 518 crore a year ago.

Net interest income rose by 59 per cent, to Rs 1,167 crore (Rs 733 crore). Non-interest income (excluding treasury) at Rs 1,011 crore grew by 46 per cent, up from Rs 692 crore.

Fee income rose by 52 per cent, to Rs 846 crore (Rs 558 crore). This includes income from sale of third party products, origination fees for home loans and transaction fees among others, said Ms Kalpana Morparia, Deputy Managing Director of the bank.

Lease and other income grew by 23 per cent, to Rs 165 crore (Rs 134 crore).

Treasury income declined by 16 per cent to Rs 168 crore (Rs 199 crore).

Total income at Rs 4,763 crore (Rs 3,269 crore) showed a rise of 45.6 per cent, while total expenditure rose by 42.8 per cent, to Rs 3,568 crore (Rs 2,497 crore).

Operating profit grew by 54.8 per cent, and amounted to Rs 1,194 crore (Rs 771 crore).

The bank's net customer assets increased by 50 per cent, to Rs 1,27,319 crore as on December 31, 2005, against Rs 84,859 crore a year ago. Retail assets constituted 64 per cent of advances and 62 per cent of customer assets.

"Home loans comprise nearly 50 per cent of the retail portfolio," said Ms Morparia. "Personal loans comprise 10 per cent, while the remaining 40 per cent comprise all kinds of vehicle funding."

Deposits increased 63 per cent to Rs 1,33,881 crore from Rs 81,928 crore a year ago.

In the nine months ended December 31, 2005, total retail disbursements were Rs 43,200 crore, including home loan disbursements of Rs 17,600 crore.

The loan portfolio of the bank's international branches rose by 192 per cent, to Rs 12,000 crore. The small, medium enterprise and agribusiness portfolio increased 20 per cent, to Rs 32,000 crore.

The bank's capital adequacy ratio (CAR) as at December 31, 2005, was 14.5 per cent, including tier-1 CAR of 10.5 per cent.

The bank sold NPAs worth Rs 258 crore, which were the residuary NPAs contributed by the erstwhile ICICI. The remaining NPAs now amount to about Rs 400 crore, said Ms Morparia. Among the group companies, ICICI Securities showed a net profit of Rs 29 crore for the third quarter, while ICICI Lombard General Insurance reported a profit after tax of Rs 10 crore.

ICICI Prudential Life Insurance had a negative impact of Rs 49 crore on the bank's consolidated net profit. The bank's scrip gained Rs 10.40 during the day to close at Rs 579.75 up by 1.83 per cent from Thursday's close.

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