ICICI Bank’s PAT rises 25.3%; overall group sees 32% increase in net profit in Q1

ICICI Bank posted a 25.3 per cent rise in standalone net profit to Rs 2274.21 crore for the quarter ended June 30, 2013, compared with Rs 1815.05 crore in Q1 FY13, driven by higher interest income, other income, reduced cost-to-income and improved margins. However, the bank’s performance was bogged down by increasing provisioning requirements.

The bank’s retail lending business saw better margins with the segment’s profit more than doubling while its key wholesale lending unit witnessed a decline in profit even on higher income. Treasury earnings rose by 50 per cent and made up for the fall in earnings in the wholesale lending unit.

The bank’s net interest income (NII) increased 20 per cent year on year to Rs 3,820 crore in Q1 FY14, while total income increased by 12.94 per cent to Rs 12,905 crore from Rs 11,425 crore for the quarter ended June 30, 2012. Its non-interest income increased 32 per cent year on year to Rs 2,484 crore in Q1 FY14.

The cost-to-income ratio reduced to 39.4 per cent in Q1 FY14 from 41.8 per cent in Q1 FY13. Provisions increased by 27 per cent to Rs 593 crore over the year-ago period.

The bank’s net interest margin (NIM) stood at 3.27 per cent in the quarter compared with 3.01 per cent in Q1 FY13.

ICICI Bank's net non-performing asset ratio edged up 5 basis points sequentially to 0.69 per cent as of June 30, 2013.

During the quarter, the bank added 250 branches, including 150 low-cost Gramin branches.

Credit and deposit growth

The bank’s advances increased by 12 per cent to Rs 301,370 crore, owing to the healthy growth in its retail disbursements, with mortgage and auto loan disbursements increasing 36 per cent and 17 per cent, respectively, year on year.

Due to its aggressive retail growth strategy and branch expansion plans, the bank saw its current and savings account (CASA) ratio improve to 43.2 per cent in the quarter compared with 41.9 per cent, sequentially.

Insurance subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) reported a profit after tax of Rs 364 crore for Q1 FY14 compared with Rs 349 crore for Q1 FY13. ICICI Life’s new business annualised premium equivalent (APE) was Rs 541 crore in the reporting quarter compared with Rs 570 crore in Q1 FY13. Assets under management were Rs 74,840 crore as of June 30, 2013.

ICICI Lombard General Insurance Company (ICICI General) reported a gross premium income of Rs 1,859 crore in Q1 FY14, up 21 per cent from the year-ago period. ICICI General’s profit after tax in the same period increased to Rs 203 crore from Rs 83 crore in Q1 FY13.

Consolidated results

At a consolidated level, the bank’s profit after tax rose 32 per cent to Rs 2,747 crore for the quarter. Total income of the group saw a 10.2 per cent year-on-year increase from Rs 16,639 crore to Rs 18,351 crore for the quarter.

After the announcement of financial results, the shares of ICICI Bank closed at Rs 909.30, down 1.86 per cent on the BSE in a flat Mumbai market on Wednesday.

(Edited by Joby Puthuparampil Johnson)

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