ICICI Bank Q4 net profit surges 21%

ICICI Bank Q4 net profit surges 21%

 The country’s largest private sector lender, ICICI Bank, has reported a net profit of Rs 2,304.07 crore for the quarter ended March 31, 2013, an increase of 21 per cent over the comparable quarter last fiscal at Rs 1,902 crore.

The bank ascribed profit growth to better margin, higher interest income and lower provisions. “This improvement in profitability is driven by healthy growth in our balance sheet and improvement in operating parameters,” ICICI Bank Managing Director & CEO Chanda Kochhar said in her post earning comments on Friday.

During the quarter under review, total income of the bank rose to Rs 12,573.52 crore as compared with Rs 11,403.10 crore in Q4FY13.

Meanwhile, the bank at its board meeting on Friday proposed a dividend of 200 per cent, or Rs 20 per share for FY2012-13.

Further, the bank’s net interest income (NII) or the difference between interest income and interest expense, expanded 22 per cent year-on-year (YoY) basis to Rs 3,803 crore in January-March quarter. 

The bank’s consolidated profit after tax for full fiscal 2013 grew by 26 per cent to Rs 9,604 crore.

The net interest margin (NIM) during this period was 3.30 per cent as compared to 3.01 per cent in the corresponding period of previous year. For FY2012-13, NIM improved by 38 basis points to 3.11 per cent. In this context, Kochhar said: “We will continue to work towards improvement in our net interest margin. We expect about 10 basis points improvement in our full year net interest margin in 2013-14.”

Other income during the quarter was tad lower than a year ago at Rs 2,208 crore on account of lower treasury income, flat dividend income and marginal rise in fee income.
Total advances increased 14 per cent YoY to Rs 290,249 crore. Domestic loans grew 18 per cent. Of this, retail loans had 37 per cent share in the bank’s total advances.

Responding to a query, Kochhar said she expects the bank’s domestic credit growth to be around 20 per cent in the current financial year.

Deposits were at Rs 292,614 crore, up 14.5 per cent YoY. The share of low-cost current account savings account (CASA) deposits improved to 41.9 per cent at the end of March, 2013 from 40.9 per cent a year earlier. The average CASA ratio was 38.1 per cent during the fourth quarter.

The bank closed the financial year with capital adequacy ratio of 18.74 per cent.
On money laundering, the bank made it clear that its internal probe has not detected any transaction that violated anti-money laundering rules. 

“The internal inquiry report has been submitted. Deloitte has also submitted its interim report. No actual transactions (violating anti-money laundering rules) have been found to have taken place,” Kochhar said.

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