ICICI Bank, country’s largest private bank, posted a 12 per cent increase in net profit for the June quarter at ₹2,976 crore, helped by higher net interest income and stable loan growth. The profit was limited by increase in provisions towards bad loans.

Net interest income (the difference between interest earned on loans and interest paid on deposits) rose 14 per cent to ₹5,115 crore while other income or non-interest income increased 5 per cent to ₹2,990 crore.

Provisions, including towards bad loans, rose 32 per cent to ₹955 crore as compared to ₹726 crore a year ago.

Fresh bad loans during the quarter amounted to ₹1,672 crore with ₹292 crore from restructured assets. Chanda Kochhar, MD and CEO, said the bank is seeing stability in its assets. Credit losses will be less than 1 per cent (going forward).

Improving recoveries “We are working towards improving our recoveries, talking to promoters to sell assets so that they can de-leverage and making our loans more granular and less concentrated in nature,” she said.

Recoveries from bad loans during the quarter stood at ₹550 crore. Gross non-performing assets (NPAs) as a percentage of total loans increased to 3.68 per cent, as on June end this year, up from 3.05 per cent a year ago.

Loan growth of 15 per cent was driven by retail growth of over 25 per cent (largely growth in home and auto loans) and corporate growth of 9 per cent. Retail constitutes 43 per cent of the total loan portfolio.

On a consolidated basis, net profit for the quarter rose 14 per cent to ₹3,232 crore as against ₹2,832 crore in corresponding period last year. Apart from the bank, the profit includes growth from ICICI Group’s life and general insurance subsidiaries and asset management unit.

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