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.
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 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)