The Hindu Business Line : ICICI Bank net up 29%

ICICI Bankreported a 29 per cent rise in March 2006 quarter net profit at Rs 789.93 crore from Rs 614.70 crore in the year-ago period. This was despite a substantial increase in provisions and contingencies at Rs 597.33 crore (Rs 80.03 crore).

Increase in interest and fee income and earnings from sale of investments helped the bank to improve its bottomline. The bank had sold shares in two South-based banks — Federal Bank and South India Bank — during the quarter.

Dividend

The bank's board has recommended a dividend of Rs 8.50 per share for the full year.

Total income for the quarter increased to Rs 5,591.71 crore (which includes income on investment of Rs 1,043.51 crore and other income of Rs 1,601 crore from Rs 3,637.54 crore.

For the full year, the bank has posted a 27 per cent increase in its net profit at Rs 2,540.07 crore from Rs 2,005.20 crore in the previous year.

Mr K.V. Kamath, Managing Director and CEO, said the bank had a robust growth in business in the last fiscal particularly in retail and rural segments.

Retail biz

He said retail business has grown by 64 per cent to Rs 92,198 crore (Rs 56,134 crore). The bank's rural and agri-business portfolio increased to Rs 16,300 crore (Rs 7,500 crore.)

Asked about his views on the interest rates, Mr Kamath said, "We will look for guidance and signals from policy makers. The systemic liquidity flows needs to be watched and we will look at the regulatory stance and price credit appropriately."

The bank's average cost of funds worked out to 6 per cent and the net interest margin was at 2.4 per cent. Net NPA dropped to 0.71 per cent from 2.03 per cent.

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