- BSE Sensex closes over 321 points higher at 25,549.72; ICICI Bank top gainerAfter 5 days of setbacks, BSE Sensex soars 220 pts to 25,228.65 ptsBSE Sensex down 135 pts at one-week low on profit-taking; Hindustan Unilever gainsICICI Bank's Q1 net profit rises 17 pct to Rs 2,655 crore, beats estimates
ICICI Bank on Thursday reported a 17% rise in net profit at R2,655 crore for the three months to June 2014. The net profit was boosted by non-interest income, dividend from subsidiaries and growth in the retail portfolio.
Asset quality deteriorated marginally during the quarter with gross non-performing asset (NPA) ratio moving up 2 bps to 3.05% sequentially, and the net NPA ratio rising 2 bps q-o-q to 0.99%. The percentage of net non-performing customer assets to net customer assets was 0.87%. Customer assets include advances and credit substitutes.
Restructured advances added in the three months were R1,394 crore, while the amount recovered was R400 crore. The ICICI Bank scrip closed at R1,473 on the BSE on Thursday, down 1.11%.
The country's largest private sector bank posted net interest income of Rs 4,492 crore, up 18% y-o-y, thanks to interest margins that rose 5 bps sequentially to 3.40%. Chanda Kochhar, managing director and CEO, said NIMs for the rest of the year would be in the region of 3.4-3.5%.
Non-interest income grew a healthy18% y-o-y to Rs 2,850 crore. "Of the total non-interest income, the fee income was Rs 1,936 crore -- an increase of about 8%. Treasury income was Rs 388 crore, which was a combination of all foreign exchange gains, equities and debt instruments. Then, there was Rs 416-crore dividend from our subsidiaries, which continue to generate very healthy profits," Kochhar said on a call with mediapersons.
Total advances at the bank increased 15% y-o-y to R3,47,067 crore. "Our retail portfolio has grown 26% on a y-o-y basis, with home loans clocking 25% and auto loans about 46%. We believe the retail segment will grow in excess of 20% this year, but we continue to adopt a calibrated approach to the corporate and SME portfolios; so, our domestic corporate portfolio grew 8%," Kochhar said. The bank's retail loans now constitute 40% of total loans and advances.
Total deposits increased 15% y-o-y to R3,35,767 crore and the Casa ratio stood at 43%. Saving deposits increased 16% y-o-y to Rs 1,02,736 crore, while current account deposits rose 13% y-o-y to R41,678 crore.
Expect retail growth to exceed 20% this fiscal
After ICICI Bank posted a 17% rise in net profit for the first quarter of this fiscal, Chanda Kochhar, the bank’s managing director and CEO, while speaking to the media said the bank believed that its growth in retail