ICICI Bank beats street with 17% rise in net profit despite spike in provisions

ICICI Bank, the country’s largest private sector bank, today reported a better-than-expected 17 percent rise in net profit during April-June, on higher net interest income and other income.

The bank’s net profit stood at Rs 2655. 3 crore compared with a CNBC-TV18 poll estimate of Rs 2,573 crore.

The bank’s core earnings, net interest income, rose 17.6 percent on year to Rs 4,491.89 crore from Rs 3,820.47 crore. Its other income also witnessed a 14.7 percent increase to Rs 2,849.81 crore from 2,484.29 crore.

The provisions at Rs 726.08 witnessed a sharp 22.4 percent increase from Rs 593.18 a year ago.

Its gross non-performing assets ratio rose to 3.23 percent from 3.05 percent a year ago.

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The bank’s cost-to-income ratio reduced to 38.4 percent from 39.4 percent a year ago.

According to a press release, total advances increased 15 percent on year to Rs 3,47,067 crore. The growth in domestic advances was 17%. The bank said the growth in retail portfolio has been a healthy 26 percent on year.

“The bank continued to grow its retail franchise and has seen healthy growth in retail assets and deposits. The bank continued to strengthen its deposit franchise with healthy mobilisation of current and savings account (CASA) deposits, leveraging its increased branch network and technology initiatives,” the press release said.