Despite higher provisions, the country’s largest private lender ICICI Bank has posted a 15 per cent rise in net profit at Rs 2,652 crore for the fourth quarter ended March 31, 2014. The profit was driven by higher non-interest income and robust loan growth.
Net profit for the year-ago quarter was at Rs 2,304 crore.
Net interest income or NII (difference between interest earned and expended) also grew 15 per cent to Rs 4,356.52 crore from Rs 3,803 crore in the same quarter last year. Other income was at Rs 2,976 crore, up 35 per cent (Rs 2,208 crore).
During the three-month period, provisions (money set aside for bad loans) jumped 55 per cent to Rs 714 crore from 460 crore in the year-ago quarter.
The bank's net interest margin for the quarter was sequentially higher at 3.35 per cent (3.32 per cent).
Non-performing assets
Gross non-performing assets (NPAs) worsened to Rs 10,506 crore as on March 31, 2014 (from Rs 9,608 crore as on March 31, 2013). Gross NPA ratio, however, improved to 3.03 per cent from 3.22 per cent.
Net NPAs increased to 0.97 per cent from 0.77 per cent.
As of March end 2014, total advances grew 17 per cent year-on-year to Rs 3.39 lakh crore with retail loan growth at 23 per cent, while deposits rose 13 per cent to Rs 3.32 lakh crore from Rs 2.93 lakh crore.
Capital adequacy ratio was at 17.7 per cent with Tier-1 at 12.78 per cent.
Full - year results
For the full year, ICICI Bank has reported an 18 per cent year-on-year increase in net profit to Rs 9,810 crore in FY2014 from Rs 8,325 crore in FY2013.
NII increased 19 per cent to Rs 16,475 crore from Rs 13,866 crore. Net interest margin during the year improved 22 basis points to 3.33 per cent from 3.11 per cent.
The board has proposed a dividend of Rs 23 per share against Rs 20 paid last year to its shareholders.
During the year, the bank added 653 branches and 834 ATMs to its total network of 3,753 branches and 11,315 ATMs.
With below-than-expected results and higher provisions, the ICICI Bank scrip was trading at Rs 1,268.80 per share, down 2.5 per cent over the previous close on the Bombay Stock Exchange.