The Telegraph
Since 1st March, 1999
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ICICI Bank net vaults 34%

Mumbai, July 25: ICICI Bank today beat analyst expectations with a 34 per cent rise in first-quarter net profit at Rs 340 crore against Rs 253 crore same time last year. Executive director Kalpana Morparia said the gains were driven by a growth in net interest income and retail assets, which went up 18 per cent, or Rs 3403 crore, to Rs 22,535 crore. They make up 35 per cent of customer assets.

A Rs 190-crore treasury profit made from fixed-income securities also contributed significantly to the profit spike.

The bank, having garnered 17 per cent of all incremental deposits, saw its liabilities increase Rs 5684 crore. It replaced erstwhile ICICIís maturing liabilities and funded incremental assets with low-cost resources. Around Rs 2300 crore of old liabilities, due for redemption, was returned in tune with the terms of repayment.

The bank switched to the 90-day recognition norm for non-performing assets (NPAs). Measured by this yardstick, its net NPA ratio stood at 4.9 per cent at the end of June, unchanged from March this year. The net interest income was Rs 416 crore, up 24 per cent compared with Rs 336 crore in April-June 2002. Total income rose from Rs 2,854.62 crore to Rs 2899.87 crore.

Buoyed by the confidence-boosting numbers, the ICICI Bank share closed with a 2.25 per cent gain at Rs 159.20 on BSE, after opening at Rs 156 and peaking at Rs 161.50.

The consolidated net profit of the group was Rs 337 crore compared with Rs 233 crore in the first quarter of the previous year. The life and general insurance businesses, the bank said, are doing well and boosting value.

ICICI Lombard General Insurance Company achieved a pre-tax profit of Rs 6 crore in the first quarter compared with a full year profit of Rs 4 crore in 2002-03. The bankís own drive to scale up its overseas business remains on course. It offshore branch in Singapore is expected to open by September. ICICI Bank UK, its wholly owned subsidiary, has received approval from the Financial Services Authority in Britain.

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