ICICI Bank Q1 profit jumps 39.7% to Rs 9,648 crore

ICICI Bank beat first-quarter expectations on Saturday as higher interest income and loan growth helped deliver a record net profit for India's second-largest private lender.

Net profit rose 39.7 per cent to Rs 9,648 crore ($1.18 billion) for the April-June quarter, beating the Rs 9,180 crore expected by analysts Refinitiv IBES data showed.

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Net interest income - the difference between interest earned and paid - rose 38 per cent to Rs 188,227 crore as ICICI's net interest margin expanded to 4.78 per cent from 4.01 per cent a year earlier.

The Mumbai-based lender's total advances grew by 20.6 per cent, largely led by retail loans, while deposits grew 17.9 per cent. Loan growth in India has stayed in double-digits in recent months, despite a 250 basis points increase in interest rates since May last year.

Banks have looked to shore up their deposit base amid tightened liquidity conditions, while simultaneously cleaning up their balance sheets.

HDFC Bank, India's largest private lender, this week reported a 15.8 per cent rise in loans for the April-June quarter and deposits up 19.2 per cent.

ICICI Bank's asset quality was stable, with its gross non-performing assets (NPA) ratio at 2.76 per cent as of end-June versus 2.81 per cent at the end of the March.

Its net NPA ratio was unchanged quarter-on-quarter at 0.48 per cent.

The bank booked provisions and contingencies of Rs 1,292 crore, up from Rs 1,144 crore a year earlier.

($1 = 81.9800 Indian rupees)