ICICI Bank Q2 net profit jumps 30% to Rs1,956.11 crore
MDT/PTI 26 October 2012

ICICI Bank's second quarter net profit rose due to 35% jump in net interest income and robust trading revenues, which grew to Rs172 crore from Rs21 crore, same period last year

 
Mumbai: ICICI Bank on Friday said its July- September quarter net profit jumped over 30% to a record Rs1,956.11 crore, driven by a rise in net interest income and strong growth in advances, reports PTI.
 
On a consolidated basis, net profit of the country's largest private sector bank for the second quarter ended 30th September, rose 20% to Rs2,390.37 crore from Rs1,991.68 crore a year ago.
 
ICICI Bank Managing Director and Chief Executive Chanda Kochhar attributed the robust numbers to the strong dividend income from its subsidiaries like insurance and broking, among others, apart from good retail-driven advances which pushed up the net interest income, which is the difference between interest paid and earned.
 
The rise in net profit was also helped by higher trading income, which rose to Rs172 crore in the quarter against a loss of Rs21 crore in the year ago period, she said.
 
ICICI Bank aims to grow its domestic loan book by around a fifth this fiscal year, led by consumer and working capital loans, and will be particularly cautious in unsecured retail lending and project finance, she said.
 
The year-on-year growth in retail advances was 14% compared 10.3% in the June quarter.
 
Net interest income soared 35% to Rs3,371 crore from Rs2,506 crore a year ago, while net interest margin rose to 3.00% from 2.61% YoY (year-on-year).
 
Non-interest income rose 17% to Rs2,043 crore from Rs1,740 crore. Cost-to-income ratio came down to 40.9% from 44.4% a year ago, Kochhar said.
 
Total provisions rose to Rs508 crore from Rs319 crore a year ago and Rs466 crore in the previous quarter.
 
However, analysts and market did not react positively to the numbers as after an initial response, the bank's stocks went down on BSE. ICICI Bank ended marginally lower at Rs1,078, while the benchmark Sensex also closed marginally down at 18,625.
 
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