ICICI Bank, on Friday, reported a net profit of Rs.1,815 crore for the first quarter ended June 30, 2012, against Rs.1,332 crore in the year-ago period, a rise of 36 per cent on the back of rise in core income and expansion of margins.
Total income increased from Rs.9,261.41 crore to Rs.11,425.57 crore .
Net interest income (NII) increased more than 32 per cent to Rs.3,193 crore from Rs.2,411 crore. Non-interest income increased by 14 per cent to Rs.1,880 crore from Rs.1,643 crore.
As at June 30, 2012, savings account deposits increased by 17 per cent year-on-year to Rs.77,923 crore. Current account deposits were Rs.30,754 crore and the CASA ratio was 40.6 per cent.
The average CASA ratio remained stable at 39.1 per cent in the first quarter of current fiscal.
Advances increased by 22 per cent year-on-year to Rs.2,68,430 crore as at June 30, 2012, from Rs.2,20,693 crore as at June 30, 2011.
Net non-performing assets declined by 17 per cent to Rs.1,941 crore from Rs.2,351 crore. The Bank’s net non-performing asset ratio declined to 0.61 per cent from 0.91 per cent.
Provisions were Rs.466 crore against Rs.454 crore.
“ICICI Bank reported strong set of numbers. NII growth was driven by robust growth in advances and NIMs were stable quarter-on-quarter. However, fee income growth was muted due to lower project financing activities,” said Gautam Trivedi, Managing Director & Head of Equities, Religare Capital Markets.
According to him, asset quality performance was also healthy with GNPLs/restructured assets stable quarter-on-quarter. Among banks, “we are seeing divergent performance on asset quality.”
While public sector banks are reporting significant stress on asset quality, delinquencies in private sector banks are still healthy.
CASA for ICICI Bank declined in this quarter due to outflow in the current account deposits; however, “this is an industry trend due to tight liquidity conditions.”
“ICICI Bank results were above estimate led by marked improvement in NII, it registered 32 per cent growth. Overall asset quality remained stable and adequate provision coverage ratio.
“Going forward sustenance of NII and quality of assets would be the key, ICICI bank remains our top pick among private sector banks,” said by Rikesh Parikh, Vice-President-Markets Strategy and Equities, Motilal Oswal Securities.
