ICICI Bank beats estimates, net jumps 20% to Rs 2,352 crore

Mumbai: ICICI Bank Ltd, India’s largest private-sector lender by assets, posted a 20.1 percent rise in second-quarter profit, beating analyst estimates, led by higher credit growth and income from fees.

Net profit for July-September was Rs 2,350 crore compared with Rs 1,960 crore a year earlier, the bank said on Friday. Net interest income, or the difference between interest earned and paid, rose about 20 percent to Rs 4040 crore.

The mean profit estimate of 23 analysts was Rs 2,190 crore, according to Thomson Reuters I/B/E/S.

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Net interest margin, a gauge of profitability for banks, expanded to 3.31 percent during the quarter from 3 percent a year earlier.

Net non-performing loans, as a percentage of total assets, rose to 0.85 percent from 0.82 percent in the prior quarter.

Current and savings account (CASA) deposits witnessed a year-on-year 17 percent increase. The bank maintined its CASA ratio at 43.3 percent as of September 30, its press release said.

Operating profit, excluding treasury increased 31 percent on year to Rs 3,967 crore. Fee income increased 17 percent on year to Rs 1,994 crore and the bank’s cost-to-income ratio reduced to 37.3 percent from 40.9 percent a year ago.

Provisions, meanwhile, stood at Rs 625 crore compared with Rs 508 crore in the year-ago period. Return on average assets was 1.70 percent, higher than 1.54 percent in the corresponding quarter last financial year.

As far as subsidiaries are concerned ICICI Life’s profit after tax stood at Rs 387 crore compared with Rs 396 crore a year ago. Its new business annualised premium equivalent (APE) was Rs 954 crore compared with Rs 781 crore a year ago.

Profit after tax of ICICI Lombard General Insurance Company increased to Rs 156 crore from Rs 101 crore in the corresponding quarter last year.

With inputs from Reuters