ICICI Bank Q2 Results: Profit Jumps 14.5% On Higher Core Income

ICICI Bank’s net profit for the quarter ended September rose 14.5% on year to Rs 11,746 crore. Analysts polled by Bloomberg estimated a net profit of Rs 10,952 crore.

Net interest income saw a rise of 9.5% on year to Rs 20,048 crore.

Asset quality improved during the quarter ended September. Gross non-performing assets ratio of the bank fell to 1.97% as at the end of Sept 30 against 2.15% a quarter ago and 2.48% a year ago.

Net NPA declined to 0.42% from 0.43% a quarter ago and a year ago.

Provisions and contingencies of the private sector bank doubled on year to Rs 1,233 crore.

The gross NPA additions were Rs 5,073 crore in Q2 compared to Rs 5,916 crore in the June quarter. Gross addition from retail and rural NPAs was about Rs 4,300 crore.

Recoveries and upgrades of NPAs, excluding write-offs and sale, were Rs 3,319 crore during the second quarter. The Bank has written-off gross NPAs amounting to Rs 3,336 crore.

Healthy loan growth continued to aid the bank’s performance. Domestic gross advances of the bank clocked a growth of 15% on year to Rs 12.77 lakh crore.

The net domestic advances grew by 15.7% year-on-year during the quarter, while the retail loan portfolio grew by 14.2% year-on-year. The business banking portfolio grew by 30, rural portfolio was up by 16.5% and domestic corporate portfolio rose 11.8%.

Deposits grew 15.7% on year to Rs 14.97 lakh crore. Term deposits increased by 15.9% year-on-year to Rs 8.89 lakh crore.

The NIM was at 4.27% in the quarter ended September compared to 4.36% in compared to the first quarter of the fiscal, according to Sandeep Batra, executive director, ICICI Bank.

The bank expects the NIM to be broadly stable until the turn in the rate cycle, Batra told reporters over a conference call on Saturday. While deposit rates have broadly peaked, ICICI Bank will watch out for any changes in the competitive landscape.

ICICI Bank calibrated its pace of growth in the unsecured lending portfolio. While the personal loan portfolio rose by 17.3%, the credit card book was up 28% year-on-year.

There has been a moderation in rate of growth in personal loan and credit card, Batra said. "As long as customers meet our risk calliberated thresholds, we will service them", he said.