Mumbai: India's largest private sector lender ICICI Bank's third quarter (October-December) standalone net profit jumped more than 30 per cent year-on-year to Rs 2,250 crore, driven by robust net interest income, which increased 29 per cent to Rs 3,500 crore. Other income too climbed 17 per cent to Rs 2,215 crore adding to the profit margin.
"The rise in profit came on the back of growth and efficiency parameters," Chanda Kochhar, MD & CEO, ICICI Bank told reporters in a conference call. "Going forward, we expect slight improvement in net interest margin by a few basis points. Our growth in loans was well-balanced. We would grow our retail loans at 20 per cent. Also, there is a room for growing our international business wherein the net interest margin stood at 1.3 per cent," she said.
Analysts on an average were expecting profit after tax at Rs 2,077 crore and net interest income at Rs 3,499 crore for the quarter. The bank expanded its loans by 16 per cent y-o-y to Rs 2.87 lakh crore while the deposits grew at a slower pace by about 10 per cent to Rs 2.86 lakh crore.
Gross non-performing asset (NPA) fell by 23 basis points quarter-on-quarter to 3.31 per cent in the third quarter.
Provisions against bad loans inched up to Rs 369 as against Rs 341 crore a year back. However, the same came down in comparison with the July-September quarter recorded at Rs 508 crore. Provision coverage ratio stood at 77.7 per cent as on December 31.
Gross non-performing asset (NPA) fell by 23 basis points quarter-on-quarter to 3.31 per cent and net NPA slipped by 2 basis points QoQ to 0.76 per cent in the third quarter. Capital adequacy ratio improved by 125 basis points QoQ to 19.53 per cent in the December quarter.
Net interest margin was up by 37 basis points YoY to 3.07 per cent in the quarter. Other income jumped 17 per cent year-on-year to Rs 2,215 crore in the December quarter. Shares erased all gains, falling 0.43 per cent to Rs 1,209 on Bombay Stock Exchange at 12:55 hours IST. The stock had touched a new 52-week high of Rs 1,231 intraday before the results announcement.