Mumbai, Jan. 31 -- Beating market expectations, ICICI Bank, India's second largest bank, posted a posted a 30% rise in net profit to Rs. 2,250 crore for the quarter ended December, against Rs. 1,728 crore a year ago, helped by a healthy growth in loans and interest income.
"We have seen a healthy increase in our advances," said Chanda Kochhar, MD and CEO, ICICI Bank.
"Not just have they (advances) grown by 16% but it has been a well diversified increase across retail and companies," she added.
Net interest income (the difference between interest earned and interest paid) of the bank, grew by 29% to Rs. 3,499 crore during the quarter driven by the healthy growth in advances.
Advances increased by 16% to Rs. 2,86,766 crore at December 31, 2012 from Rs. 2,46,157 crore at December 31, 2011.
On a consolidated basis, the bank's net profit rose 22 % year-on-year to Rs. 2,645 crore from Rs. 2,174 crore as all its subsidiaries reported better numbers.
In the December quarter, the net interest margin of the bank grew by 0.37 percentage points to 3.07% over the year-ago period.
The bank also improved asset quality as net non-performing asset (NPA) ratio improved to 0.64% at December 31, 2012 compared to 0.66% at September 30, 2012
"The bank has managed to broadly hold on to its good asset quality, aided by better than expected recoveries and upgrades from their past NPAs," said Vaibhav Agrawal, banking analyst, Angel Broking.
"We expect the bank to continue to relatively perform much better than the industry average, with growth in retail loans also continuing to pick up and earnings growth likely to sustain at least 20% levels, which may be considered quite good in the current environment," Agarwal added.
Published by HT Syndication with permission from Hindustan Times.