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Mumbai, Oct. 19 ICICI Bank posted a net profit of Rs 1,002.6 crore for the quarter ended September 30, 2007, up 33 per cent from Rs 755.01 crore in the corresponding quarter last year on the back of a 33 per cent growth in advances.

Ms Vishakha Mulye, Chief Financial Officer and Treasurer, ICICI Bank, said this is the first time the bank has reported a net profit of over Rs 1,000 crore.

The growth has come from net interest income, which increased 34 per cent to Rs 1,786 crore, and other income, which increased 32 per cent to Rs 1,334 crore.

The net interest margin (NIM) was 2.25 per cent, which is lower compared to other private banks such as HDFC Bank with 4 per cent and Axis Bank with 3.28 per cent.

Ms Mulye said, “Our NIM has increased 30 basis points from the first quarter, when it was 1.95 per cent. If you look at our strategy, our international advances are 18 per cent of total advances. In international advances NIM is low, but fee income is high.”

The cost of funds is at 7.7 per cent, which is high by industry standards, said banking analysts.

The proportion of net Non-Performing Assets (NPAs) to total assets was 1.4 per cent (1 per cent), which too was higher compared to its peers (HDFC Bank at 0.4 per cent, Axis Bank at 0.55 per cent).

Ms Mulye said, “Net NPAs are a function of asset growth. Our asset growth has been at over 30 per cent.”

The bank’s total advances increased to Rs 2,07,121.07 crore (Rs 1,55,403.49 crore). Retail advances now form 63 per cent of total advances, corporate assets form 12 per cent, and international advances form 18 per cent of total advances.

According to analysts, ICICI Bank could see a slightly high NPA ratio because retail loans by their very nature are prone to some default.

More Stories on : Financial Performance | Private Banks | Financial Performance | ICICI Bank Ltd

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