Mumbai, Oct. 25: ICICI Bank today beat Street estimates by posting a 20 per cent growth in standalone net profit for the second quarter ended September 30 at Rs 2,352 crore compared with Rs 1,956 crore in the corresponding period last year.
Brokerages had expected the lender to report a net profit in the region of Rs 2,039-2,200 crore.
With corporate loan feeling the pinch of economic slowdown, ICICI Bank is focusing on its retail portfolio that includes car and home loans. The strategy worked as total advances increased 16 per cent year-on-year to Rs 317,786 crore at the end of September 30, 2013, from Rs 275,076 crore in September last year.
Domestic advances grew 14 per cent on account of a healthy show in retail disbursements. Outstanding mortgages and auto loan portfolios rose 23 per cent and 27 per cent, respectively, during the second quarter, resulting in the total retail portfolio growing 20 per cent.
Chanda Kochhar, managing director and CEO, said the lender would continue to grow its retail loans.
The net interest income, or the difference between interest earned and paid, rose 20 per cent to Rs 4,044 crore from Rs 3,371 crore a year ago.
The net interest margin, a key measure of profitability, rose four basis points to 3.31 per cent on a sequential basis.
Fee income, which jumped 17 per cent to Rs 1,994 crore, also contributed to the strong numbers.
The bank said it had provided for the entire mark-to-market losses of Rs 279 crore during the quarter and chose not to spread it over three quarters.
The asset quality of the bank was stable with gross non-performing assets at Rs 10,028 crore compared with Rs 10,009 crore in the preceding quarter. However, restructured loans increased 15 per cent during the quarter.
For the first half of the current fiscal, the bank’s net profit on a standalone basis rose 22.64 per cent to Rs 4,626.26 crore. The total income rose to Rs 25,884.7 crore.
The ICICI Bank scrip closed flat at Rs 1,021.65 on the BSE.