ICICI Bank Q1 net profit up 12%

Bank's share price shoots up by 3.97% on the BSE

Salil Panchal
Published: Jul 31, 2015 04:59:38 PM IST
Updated: Jul 31, 2015 09:16:32 PM IST

Life is not a template and neither is mine. Like several who have worked as journalists, I am a generalist in my over two decade experience across print, global news wires and dotcom firms. But there has been one underlying theme in each phase; life gave me the chance to observe and tell a story -- from early days tracking a securities scam to terror attacks and some of India's most significant court trials. Besides writing, I have jumped fences to become an entrepreneur, as an investment advisor -- and also taught the finer aspects of business journalism to young minds. At Forbes India, I also keep an eye on some of its proprietary specials like the Rich list, GenNext and Celebrity lists. An alumnus of Xavier Institute of Communications and H.R College of Commerce and Economics in Mumbai, I have worked for organisations such as Agence France-Presse, Business Standard, The Financial Express and The Times of India prior to this.

ICICI Bank Q1 net profit up 12%
Image: Vikas Khot
Chanda Kochhar, MD and CEO of ICICI Bank

ICICI Bank, India’s largest private lender, on Friday reported a standalone net profit which beat market estimates, rising 12 percent year-on-year to Rs 2,976 crore in the June-ended quarter. The performance was led by a strong net interest income and a growing loan book.

The bank, which is also listed in New York, saw its share price close up by 3.97 percent at Rs 302.50 rupees at the Bombay Stock Exchange.

ICICI Bank was estimated to show a Q1 profit of Rs 2,919 crore in the April-June quarter, according to estimates of analysts polled by CNBC-TV18.

Net interest income, the difference between interest earned and interest expended, rose by 14 percent to Rs 5,115 crore, against Rs 4,492 crore in the same period last year, aided by 15 percent credit growth.

“The numbers were largely in line with expectations. Though there was some stress on the restructured assets side, the management has said that these had been frontloaded,” an analyst with a private equity research firm said, declining to be named.

Total advances for the bank rose by 15 percent to Rs 3,99,738 crore in the first fiscal quarter, compared to Rs 3,47,067 crore in the previous year.

The provisions for bad loans rose by 31.7 percent to Rs 956 crore in the June quarter, against Rs 1,344 crore, which was what analysts had expected.

ICICI Bank reported an improvement in its asset quality on a sequential basis. Gross non-performing assets (NPAs) fell by 10 basis points to 3.68 percent and net NPA slid by 3 basis points to 1.58 percent compared to the March quarter.

The bank, after reporting the key data, said it expected to see the rate of new bad loans slowing. The bank has in April said its fourth fiscal quarter that ended on March 31 was probably the worst in terms of asset quality.

In a conference call with analysts later, the bank said that the net restructured loans for the bank were Rs 126.04 billion as of June 30, 2015, against Rs 110.17 billion as of March 31, 2015. The bank added that there was “no pipeline” of cases to be restructured.

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