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Sunday, Apr 26, 2009
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Business Daily from THE HINDU group of publications Sunday, Apr 26, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Financial Performance Corporate Results - Private Banks
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Mumbai, April 25 ICICI Bank reported a 35 per cent fall in net profit at Rs 744 crore for the quarter ended March 31, 2009, against Rs 1,150 crore in the same period last year. The bank’s profit took a beating due to lower fee income, higher provisioning towards bad loans and an almost flat net interest income. According to Ms Chanda Kochhar, Joint Managing Director and CFO, last year the bank had substantial income from sale of shares and debentures, which was not there this year due to the adverse conditions in the domestic and global financial markets. The decline in net profit is in line with analysts’ expectations. The bank has declared a dividend of Rs 11 a share of Rs 10 face value. For the full year 2008-09, the bank’s net profit fell to Rs 3,758 crore (Rs 4,158 crore), a dip of 10 per cent. Advances, deposits dipWhile FY09 advances declined by 3 per cent, deposits fell by 11 per cent. Ms Kochhar attributed the decline in deposits to the bank’s conscious strategy of not renewing high cost bulk deposits. The CASA (current account savings account) ratio improved to 28.7 per cent (26.1 per cent). Net interest margin improved marginally to 2.4 per cent (2.2 per cent). Asset quality of the bank deteriorated with the ratio of gross NPAs to total advances increasing to 4.32 per cent (3.3 per cent) and that of net NPAs to net advances rising to 2.09 per cent (1.55 per cent). Provisions increased to Rs 1,084 crore (Rs 947 crore). “Credit losses are not a cause for concern as we have not grown our balance sheet much in the just ended fiscal. We may see some improvement in asset quality on the retail side because the proportion of unsecured loans is coming down,” Ms Kochhar said. The bank’s balance sheet size shrank by 5 per cent to Rs 3,79,301 crore (Rs 3,99,795 crore). The bank restructured assets worth Rs 1,115 crore in FY09. Most of the restructured assets are on the corporate side, Ms Kochhar said. Pointing out that the bank will see muted loan growth in the current fiscal, Ms Kochhar said, “We will concentrate on conserving capital and improving our CASA share.” SubsidiariesICICI Prudential Life Insurance incurred a net loss of Rs 577 crore in the financial year 2008-09, lower than the Rs 1,032 crore loss it incurred in fiscal 2007-08. The company’s total premium increased by 13 per cent to Rs 15,356 crore in the just ended fiscal. The general insurance arm, ICICI Lombard General Insurance, reported a 77 per cent fall in net profit at Rs 24 crore from Rs 103 crore in 2007-08. ICICI Bank cuts lending, deposit rates ICICI Bank posts 3% growth in net profit ICICI Bank touches new low on negative outlook More Stories on : Financial Performance | Private Banks | ICICI Bank Ltd
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