Mumbai, Jan. 20: ICICI Bank today joined the country’s infotech majors when it declared a 42 per cent growth in net profit for the quarter ended December 31, 2006.

Net profit rose to Rs 910 crore from Rs 640 crore in the same period last year, buoyed by a strong growth in advances and a sharp rise in fee income, coupled with revenues from the sale of equity investments.

The bank’s net profit was above analysts’ expectations of a little over Rs 800 crore. Moreover, the profit growth was similar to that reported by IT majors such as Wipro and Tata Consultancy Services.

Despite a rise in lending rates, ICICI Bank was able to maintain the net interest margin or spread. Income from its core operations also rose 32 per cent to Rs 1,709 crore from Rs 1,296 crore last year.

Another positive spot in its results sheet was the sharp jump in fee income from the sale of mutual fund and insurance products, which stood at Rs 1,345 crore, a 53 per cent rise over Rs 881 crore in the same period last year.

ICICI Bank said retail assets increased 50 per cent to Rs 117,914 crore as on December 31, 2006 from Rs 78,495 crore on December 31, 2005.

According to the bank, for the nine-month period, total retail disbursements were about Rs 54,100 crore, including home loan disbursements of about Rs 21,300 crore. Retail assets constituted 68 per cent of advances and 65 per cent of customer assets.

The bank said it is focusing on non-fund-based products and services, and capitalising on opportunities presented by the domestic and international expansion of Indian companies. Its rural portfolio grew 43 per cent on a year-on-year basis.

According to Kalpana Morparia, joint managing director of ICICI Bank, capital gains in equity investments also contributed to the treasury income. During the period, the bank had sold some of its stakes in other entities. The treasury gains shot up to Rs 310 crore from Rs 134 crore in the same period last year.