ICICI Bank’s net profit rose 25 per cent to Rs 2,274 crore in the April-June quarter on the back of steady growth in interest income and higher margins.
The country’s largest private sector bank posted a net profit of Rs 1,815 crore in the corresponding year-ago period.
Net interest income (the difference between interest earned and expended) increased 20 per cent to Rs 3,820 crore. Other income jumped 32 per cent on healthy trading profit, fee income and dividend from subsidiaries.
During the quarter, net interest margin increased to 3.27 per cent from 3.01 per cent in the year-ago period.
Consolidated (including profit from its subsidiaries) net profit in the quarter increased 32 per cent to Rs 2,747 crore against Rs 2,077 crore in Q1 FY13.
As on June 30, total advances grew 12 per cent year-on-year driven by growth in the retail segment (27 per cent). “The retail segment will continue to grow faster at about 20 per cent…..there are no fresh project loan applications in the corporate segment,” said Chanda Kochhar, Managing Director and Chief Executive Officer.
Further, commercial vehicle loan growth declined 19 per cent due to slowdown in the past two quarters. The corporate loan book grew 14 per cent, mainly due to demand for working capital and refinancing of loans.
Total deposit growth edged up 9 per cent to Rs 2.91-lakh crore (against Rs 2.68-lakh crore in the year-ago period). However, sequentially, growth in deposits showed a marginal decline.
During the quarter, the bank repatriated $100 million and $75 million capital from its UK and Canadian subsidiaries, respectively. The bank also shut down two of its 11 branches in the UK due to slow growth.
NPA
The bank’s net non-performing assets increased to 0.82 per cent (0.71 per cent), which led to higher provisioning at Rs 593 crore, up 27 per cent from Rs 466 crore.
The ICICI Bank shares ended 1.86 per cent lower at Rs 909.30 on the Bombay Stock Exchange on Wednesday.