PRESS TRUST OF INDIA
Mumbai, 25 October
ICICI Bank today posted a 20 per cent jump in standalone net profit at Rs 2,352 crore for the quarter ended September 2013, driven by an increase in core income, improvement in net interest margin and lower operating expenses.
Total income of the bank during the period under review was Rs 12,979.79 crore as against Rs 12,069.30 crore in the same period a year ago. The core net interest income grew 20 per cent to Rs 4,044 crore.
The bank’s managing director and chief executive Chanda Kochhar attributed the good set of numbers to better show on fee income front which rose 17 per cent to Rs 1,966 crore. This figure was in single-digit earlier, she said.
The net interest margin expanded to 3.31 per cent, which is the second highest ever figure for the bank. It bettered on low reliance on wholesale fund domestically and improvement in cost of funds in international business, Ms Kochhar said.
The bank also raised its FY 2014 NIM target by 0.10 per cent to 3.31 per cent.
On the advances front, Ms Kochhar said the bank adopted a “calibrated” strategy of staying away from corporate loans and focus more on the retail side. Corporate credit registered a growth of only 11 per cent, while on retail side the expansion was 20 per cent.
The retail segment’s pre-tax profit more than doubled to Rs 623.22 crore on advances growth and larger NIMs, she said, adding the bank will continue to focus on its retail franchise.
Overall deposits grew 10 per cent during the quarter. The bank maintained the CASA ratio at 43.3 per cent.
The bank added Rs 1,100 crore to its gross non-performing assets. It added Rs 1,076 crore in restructured assets during the quarter, she said.
The gross non-performing assets ratio improved to 3.08 per cent from the year ago’s 3.54 per cent.
Provisions moved up 23 per cent to Rs 625 crore, a large part of which was for net MTM losses as the bank has provided for the entire MTM loss during the quarter.
For the first half of the current fiscal, ICICI Bank’s net profit on standalone basis rose by 22.64 per cent to Rs 4,626.26 crore. The total income rose to Rs 25,884.7 crore.
Meanwhile, ICICI Bank today appointed Mr Rakesh Jha as the chief financial officer of the company in place of NS Kannan.
Prior to the appointment, Mr Jha was deputy chief financial officer, ICICI Bank said in a statement. Mr Jha will report to Kannan, who would continue to be executive director of ICICI Bank, it said.