Free from social onus, ICICI Bank mints 12% profit growth

The bank had a standalone net profit of Rs 2,655.30 crore in the corresponding quarter of the last fiscal. Stock markets gave a thumps up to the result as it was better-than-expectated. Shares of the bank surged over 6 per cent following the announcement of quarterly numbers.

Shares of ICICI Bank were trading at Rs 305.90, up 5.14 per cent on BSE during the afternoon trade. 

The gross non-performing assets (NPAs) as a percentage of total advances of the bank rose to 3.68 per cent during the quarter under review from 3.05 per cent in the same quarter last fiscal, ICICI Bank said in a filing to BSE.

Net NPA of the bank also rose to 1.58 per cent against 0.99 per cent in the same period a year ago. In absolute terms, the GNPA rose to Rs 15,137.61 crore as against Rs 10,843.30 crore in the first quarter of the previous fiscal.

Total provisions rose to Rs 956 crore in the first quarter compared with Rs 726 crore in the same period a year ago. However, the asset quality improved compared with March quarter when the gross NPA was 3.78 per cent.

Total income of the bank rose to Rs 15,802.45 crore in the first quarter of 2015-16, from Rs 14,616.71 crore in the three month period of last fiscal.

During the quarter net interest income increased by 14 per cent to Rs 5,115 crore as against Rs 4,492 crore in the same period a year ago. Non-interest income or fee income rose by 5% to Rs 2,990 crore from Rs 2,850 crore. On a consolidated basis, ICICI Bank registered a 14 per cent increase in profit after tax to Rs 3,232 crore for the quarter ended June 30, from Rs 2,832 crore for the quarter ended June 30, 2014. During the quarter, the bank saw 14 per cent year-on-year growth in savings account deposits, and 25 per cent growth in retail advances.

Net interest margin improved to 3.54 per cent from 3.40 per cent in the first quarter of last fiscal. The bank’s capital adequacy at June 30 as per RBI guidelines on Basel III norms was 16.37 per cent and tier 1 capital adequacy was 12.26 per cent, well above regulatory requirements.

Its subsidiary ICICI Prudential Life Insurance achieved a profit of Rs 397 crore compared with Rs 382 crore in the same period a year ago.

General insurance subsidiary ICICI Lombard recorded profit growth of 61 per cent to Rs 116 crore as against Rs 72 crore during the first quarter of last fiscal. As part of shifting focus to non-risky assets, the share of retail assets has grown to 43 per cent from 39 per cent in the year ago period, on a faster growth rate, Chanda Kochhar said, adding that retail advances grew 25 per cent as against corporate’s 9 per cent.

Kochhar said the retail growth was driven primarily by home and auto loans, while better rated corporates and state run enterprises helped the corporate loan growth. Much of the corporate demand is for working capital and brownfield expansions, she said, adding that the renewable energy sector is resulting in some greenfield project loan demand.

Advances of less than Rs 1,000 crore were refinanced under the 5:25 scheme for infrastructure projects. Commenting on reports suggesting sale of stake in housing finance arm, Kocchar said there is no such transaction in progress at present but it keeps looking at opportunities of monetising investments. Declining to comment on expectations from the Reserve Bank’s upcoming policy, Kochhar said the bank will be passing the accruing benefit on the cost of funds to the borrowers.

Kochhar said the bank is maintaining the target of the 18-20 per cent loan growth for the fiscal. Its overall capital adequacy stood at 16.75 per cent as on June 30 with the core tier-I at 12.64 per cent and Kochhar said there are no plans to raise fresh capital.

It may, however, get some capital from its overseas subsidiaries as is the trend in recent quarters, Kochhar said without giving an indicative amount. Among its subsidiaries, the life insurance arm reported a PAT of Rs 397 crore as against Rs 382 crore, while for the general insurance arm, it shot up 61 per cent to Rs 72 crore. The brokerage business reported a profit of Rs 61 crore, while the asset management company’s profits were up 31 per cent to Rs 80 crore, Kochhar said.

Shares of ICICI Bank jumped 4 per cent on Friday, adding Rs 6,725.5 crore to its market valuation, after the company reported 12.08 per cent growth in net profit for the quarter ended June. The blue-chip stock ended the day with a gain of 3.97 per cent at Rs 302.50 on the BSE. During the day, it rallied 6.16 per cent to Rs 308.90. At the NSE, shares of the company settled 3.91 per cent higher at Rs 302.40. Boosted by the rally in the stock, the company’s market valuation rose by Rs 6,725.5 crore to Rs 1,75,592.50 crore. On the volume front, 43.20 lakh shares of the company changed hands at the BSE and over 3 crore shares were traded at the NSE during the day. Private sector lender ICICI Bank today reported 12.08 per cent growth in net profit at Rs 2,976.16 crore, its record quarterly profit, for the quarter ended June despite increase in stress on asset quality. The bank had a standalone net profit of Rs 2,655.30 crore in the corresponding quarter of the last fiscal. The gross non-performing assets (NPAs) as a percentage of total advances of the bank rose to 3.68 per cent during the quarter.