ICICI Bank’s PAT rises 20%; overall group sees 13% increase in net profit in Q2

ICICI Bank posted a 20 per cent rise in standalone net profit to Rs 2,352 crore for the quarter ended September 30, 2013, compared with Rs 1,956 crore in Q2 FY13, driven by improved margins and higher other income. However, the bank’s performance was bogged down by increasing provisioning requirements and during the quarter the bank also fully recognised mark-to-market provisions of Rs 279 crore on its investment portfolio.

The bank’s retail lending business saw better margins while its key wholesale lending unit, which witnessed a decline in profit last quarter, bounced back on the back of improved lending. Treasury earnings saw moderation on its income growth.

The bank’s net interest income (NII) increased 20 per cent year on year to Rs 4,044 crore in Q2 FY14, while total income increased by 7.5 per cent to Rs 12,979 crore. Its non-interest income increased 6 per cent year on year to Rs 2,166 crore in Q2 FY14.

The cost-to-income ratio reduced to 37.3 per cent in Q2FY14 from 40.9 per cent in Q2FY13. Provisions increased by 23 per cent to Rs 625 crore over the year-ago period.

The bank’s net interest margin (NIM) stood at 3.65 per cent in the quarter compared with 3.63 per cent sequentially.

ICICI Bank's net non-performing asset ratio edged up 4 basis points sequentially to 0.73 per cent as of September 30, 2013.

During  the  quarter,  the  bank added  157  branches, including  105  low-cost  gramin  branches,  and  196 ATMs to its network.

Credit and deposit growth

The  bank   continued  to  see  healthy  growth  in  its  retail disbursements.  As a  result,  its outstanding  mortgages  and  auto loan portfolios   grew by  23 per cent  and  27 per cent,  respectively,  on  a year-on-year basis. 

Total advances increased  by  16 per cent to Rs 3,17,786 crore  and the growth  in  domestic  advances was  14 per cent.

The bank saw healthy trends in current and savings account (CASA) deposit mobilisation. During Q2FY14, savings account deposits increased by Rs 4,682 crore while current account  deposits rose by Rs 3,391 crore. The bank’s CASA ratio was maintained  at  43.3%  as of September  30,  2013.

Insurance subsidiaries

ICICI  Life’s  profit  after  tax  for  Q2FY14  was  Rs 387 crore compared  with Rs 396  crore  for  Q2FY13.  ICICI Life’s new business’ annualised premium equivalent (APE) was Rs 954 crore in Q2FY14 compared with Rs 781 crore in Q2FY013.

The assets under management as of September 30, 2013 were Rs 73,976 crore. The gross premium income of ICICI Lombard General Insurance Company (ICICI General) increased by 12 per cent to  Rs 1,701 crore in Q2FY14 from  Rs 1,517 crore in Q2FY13. ICICI General’s profit after tax for Q2FY14 increased to Rs 156 crore from Rs 101 crore for Q2FY13.

Consolidated profits

Consolidated profit after tax increased  13 per cent  to  Rs 2,698 crore  for Q2FY14 from Rs 2,390 crore in Q2FY13, after including the impact of market volatility on subsidiaries with market-linked businesses. The consolidated return on equity on an anannualised basis was 14.6 per cent during Q2FY14.

After the announcement of financial results, the shares of ICICI Bank closed at Rs1,022, up 1.45 per cent on the NSE in a weak Mumbai market on Friday.

(Edited by Joby Puthuparampil Johnson)

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