Leverages strong corporate franchise

ICICI Bank reported a net profit of Rs.4,563 crore for the nine-month period ended December 31, 2011, against Rs.3,699 crore in the year-ago period, up by 23 per cent. The bank reported a consolidated net profit of Rs.5,833 crore for the nine months against Rs.4,525 crore, up 29 per cent.

It announced a 20 per cent year-on-year increase in net profit at Rs.1,728 crore for the quarter ended December 31, 2011, against Rs.1,437 crore in the quarter ended December 31, 2010.

Advances increased by 19 per cent year-on-year to Rs.246,157 crore as at December 31, 2011, from Rs.206,692 crore as at December 31, 2010. Current and savings account (CASA) ratio increased to 43.6 per cent as at December 31, 2011, from 42.1 per cent in the year-ago period.

Net non-performing assets declined by 28 per cent to Rs.2,082 crore from Rs.2,873 crore. Net non-performing asset ratio declined to 0.70 per cent from 1.16 per cent. Its capital adequacy ratio was at 18.88 per cent and Tier-1 capital adequacy at 13.13 per cent.

Net interest income increased by 17 per cent to Rs.2,712 crore in third quarter of the current fiscal from Rs.2,312 crore in the corresponding period of the previous year. Fee income increased by 5 per cent to Rs.1,701 crore from Rs.1,625 crore. Provisions declined by 27 per cent to Rs.341 crore from Rs.465 crore. “The bank has continued with its strategy of pursuing profitable growth. In this direction, the bank continues to leverage its strong corporate franchise, its international presence and its expanded branch network in India,” ICICI Bank said in a release on Tuesday.

During the third quarter savings deposits and current account deposits increased by Rs.3,349 crore and Rs.7,042 crore respectively.

Modest rise in PNB net

Our Delhi correspondent writes:

Punjab National Bank (PNB) recorded a modest 5.5 per cent growth in net profit at Rs.1,150 crore after being hit badly by higher provisioning towards bad loans and depreciation in investment in the third quarter ended December 31, 2011. It posted a net profit of Rs.1,089.77 in the year-ago period.

The reason for the marginal increase in net profit was increase in provision against non-performing assets (NPAs) and depreciation in investment, Chairman and Managing Director K. R. Kamath told a press conference here. However, the operating profit rose by 13.9 per cent to Rs.2,676 crore from Rs.2,350 crore in the same quarter in the previous fiscal. Total provision increased to Rs.1,526 crore from Rs.1,260 crore.

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