ICICI Bank posts record 30 pc profit at Rs 1,956.11 cr

ICICI Bank posts record 30 pc profit at Rs 1,956.11 cr

ICICI Bank today said its July- September quarter net profit jumped over 30 per cent to a record Rs 1,956.11 crore, driven by a rise in net interest income and strong growth in advances.

On a consolidated basis, net profit of the country's largest private sector bank for the second quarter ended September 30, rose 20 per cent to Rs 2,390.37 crore from Rs 1,991.68 crore a year ago.

ICICI Bank Managing Director and Chief Executive Chanda Kochhar attributed the robust numbers to the strong dividend income from its subsidiaries like insurance and broking, among others, apart from good retail-driven advances which pushed up the net interest income, which is the difference between interest paid and earned.

The rise in net profit was also helped by higher trading income, which rose to Rs 172 crore in the quarter against a loss of Rs 21 crore in the year ago period, she said. ICICI Bank aims to grow its domestic loan book by around a fifth this fiscal year, led by consumer and working capital loans, and will be particularly cautious in unsecured retail lending and project finance, she said.

The year-on-year growth in retail advances was 14 per cent at compared 10.3 percent in the June quarter. Net interest income soared 35 per cent to Rs 3,371 crore from Rs 2,506 crore a year ago, while net interest margin rose to 3.00 per cent from 2.61 per cent YoY (year-on-year).

Non-interest income rose 17 per cent to Rs 2,043 crore from Rs 1,740 crore. Cost-to-income ratio came down to 40.9 per cent from 44.4 per cent a year ago, Kochhar

Total provisions rose to Rs 508 crore from Rs 319 crore a year ago and Rs 466 crore in the previous quarter.

However, analysts and market did not react positively to the numbers as after an initial response, the bank's stocks went down on BSE to Rs 1,078 at 1430 hrs, a drop of 0.6 per cent.