Our Bureau

Mumbai, Jan. 17

A ROBUST growth in retail loans coupled with higher net interest income helped ICICI Bank to record an 18 per cent jump in net profit at Rs 517.68 crore for the third quarter ended December 31, 2004, against a net profit of Rs 440.10 crore in the year-ago period.

Ms Kalpana Morparia, Joint Managing Director, ascribed the bank's profits largely to a 43 per cent growth in net interest income and an 83 per cent growth in fee income.

Another factor that aided the bank's profits was low-cost deposits replacing the erstwhile ICICI's high-cost liabilities, she said.

The cost of the liabilities was at 10 per cent. During April-December 2004, Rs 5,000 crore worth of these liabilities have been redeemed. Lower cost deposits of around 4 per cent have now replaced these liabilities.

As on December 31, 2004, the erstwhile ICICI's liabilities constituted 18 per cent of the Bank's funding compared to 31 per cent at December 31, 2003.

During the quarter ended December 31, 2004, the bank transferred statutory liquidity ratio (SLR) investments amounting to Rs 21,348.94 crore from the `available for sale' category to the `held to maturity' category. Due to this, the bank made a provision of Rs 182.82 crore to its accounts.

Total income of the bank for the third quarter was at Rs 3,269.09 crore (Rs 3,032.94 crore). This comprised interest earned at Rs 2,378.36 crore (Rs 2,219.91 crore) and other income at Rs 890.73 crore (Rs 813.03 crore). Net interest income grew to Rs 733 crore (Rs 513 crore).

Total expenditure was at Rs 2.497.87 crore (Rs 2,352.02 crore). This comprised interest expended at Rs 1,645.21 crore (Rs 1,706.67 crore) and operating expenses, which were higher at Rs 852.66 crore (Rs 645.35 crore).

Gross NPAs of the bank were lower at Rs 6,240 crore (Rs 8,414 crore). Net NPAs of the bank were lower at Rs 1,940 crore (Rs 3,151 crore).

Home loan disbursements grew to Rs 13,147 crore (Rs 9,000 crore). The total outstanding loans in the banks home loan portfolio stood at Rs 23,500 crore.

Retail assets increased 63 per cent to Rs 46,194 crore (Rs 28,265 crore) while fee income increased 83 per cent to Rs 558 crore (Rs 305 crore).

The bank's capital adequacy at December 31, 2004 was 13.5 per cent

(This article was published in the Business Line print edition dated January 18, 2005)
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