Business Daily from THE HINDU group of publications
Sunday, Jul 22, 2007
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Business Daily from THE HINDU group of publications Sunday, Jul 22, 2007 ePaper |
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Financial Performance Corporate Results - Private Banks Money & Banking - Financial Performance
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Mumbai, July 21 ICICI Bank’s net profit for the first quarter of 2007-08 rose by 25 per cent to Rs 775 crore compared with Rs 620 crore in the corresponding period last year, driven by growth in advances and fee-income. “Increase in fee-based income and net-interest income have contributed to the bank’s net profit,” said Ms Vishakha Mulye, Chief Financial Officer, ICICI Bank. The bank’s total income for the quarter rose to Rs 9,281.42 crore (Rs 6,049.66 crore) while other income was at Rs 1,715.29 crore (Rs 1,011.03 crore). Fee income increased by 35 per cent, and net interest income by 16 per cent. According to some analysts, the bank’s net interest income has been below market expectations. (Two other leading private sector banks HDFC Bank and UTI Bank have posted a jump in net profit of over 34 per cent and 45 per cent, respectively, in the first quarter.) The bank’s net interest margin for the quarter under consideration reduced marginally to 2.3 per cent, from 2.5 per cent a year ago. “Net interest income has been impacted by the rise in cash reserve ratio to 6.5 per cent,” said Ms Mulye. “Secondly, the cost of funds has increased by around 70 basis points while the yield on advances has increased by 50 basis points.” Total advances rose by 35 per cent while the total deposits were up by 26 per cent.
The bank’s retail advances increased, constituting 64 per cent of advances, rose 29 per cent. “Non-collateralised loans like personal loans and credit card outstandings have done well while we have seen a slowdown in home loan growth due to rising interest rates and property prices,” she said. “We think the interest rates have peaked,” she added. “Liquidity is quite comfortable but one has to watch out for RBI’s credit policy this month.” On reports of a possible cut in deposit rates, she said, “We have not taken a decision on that.” The bank’s capital adequacy as on June 30, 2007 was at 11.03 per cent, including Tier-I capital adequacy of 7.1 per cent. The bank’s net non-performing assets constituted 1.3 per cent of net customer assets. ICICI Bank’s shares ended at Rs 985.15 on Friday against the previous close of Rs 989.55 on the Bombay Stock Exchange.
Related Stories: More Stories on : Financial Performance | Private Banks | Financial Performance | ICICI Bank Ltd
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