Mumbai, Jan. 31: ICICI Bank today beat Street estimates to post a 30 per cent rise in third-quarter net profit, driven by higher core income and lower provisions.
Net profit of the country’s largest private bank for the quarter ended December 31, 2012, stood at Rs 2,250 crore compared with Rs 1,728 crore in the corresponding period last year.
Analysts had expected the lender to report net profits in the region of Rs 2,000 crore.
Net interest income (NII) rose 29 per cent to Rs 3,499 crore during the period under review from Rs 2,712 crore in the year-ago period. NII is interest earned minus interest paid. Moreover, net interest margin (NIM), a key parameter of profitability, improved to 3.07 per cent from 2.70 per cent last year.
While non-interest income rose 17 per cent to Rs 2,215 crore (Rs 1,892 crore), provisions rose to Rs 369 crore from Rs 341 crore in the year-ago quarter. Provisions were much higher at Rs 508 crore for the second quarter ended September 2012.
On its performance during the quarter, ICICI Bank said while it continued with the strategy of pursuing “profitable growth”, retail disbursements also grew, resulting in an improvement in the retail loan portfolio.
While advances increased 16 per cent to Rs 286,766 crore for the December quarter of 2012 against Rs 246,157 crore in the year-ago period, retail advances grew 17 per cent year-on-year to Rs 96,528 crore.
On the deposit front, the bank’s current and savings account (CASA) ratio was stable at 40.9 per cent for the quarter ended December 2012 compared with 40.7 per cent in the preceding September quarter.
As on December 31, 2012, savings account deposits stood at Rs 81,463 crore and current account deposits were Rs 35,674 crore.
ICICI Bank also performed well on the asset quality front with gross non-performing assets (NPAs) in absolute terms remaining nearly stable at Rs 9,763 crore against Rs 9,723 crore last year and lower than Rs 10,036 crore in the second quarter of this year. Further, the percentage of gross NPAs to gross advances fell to 3.31 per cent from 3.82 per cent last year.
Other income was Rs 193 crore, mainly in the form of dividends from it subsidiaries with ICICI Pru Life chipping in with Rs 97 crore and ICICI Lombard giving Rs 95 crore.
ICICI Bank shares closed at Rs 1,190.85 after hitting a high of Rs 1,231 in the run-up to the earnings announcement, down 1.93 per cent from yesterday’s close on the Bombay Stock Exchange.