ICICI Bank Q1 net profit up 12%
Bank's share price shoots up by 3.97% on the BSE
ICICI Bank, India’s largest private lender, on Friday reported a standalone net profit which beat market estimates, rising 12 percent year-on-year to Rs 2,976 crore in the June-ended quarter. The performance was led by a strong net interest income and a growing loan book.
The bank, which is also listed in New York, saw its share price close up by 3.97 percent at Rs 302.50 rupees at the Bombay Stock Exchange.
ICICI Bank was estimated to show a Q1 profit of Rs 2,919 crore in the April-June quarter, according to estimates of analysts polled by CNBC-TV18.
Net interest income, the difference between interest earned and interest expended, rose by 14 percent to Rs 5,115 crore, against Rs 4,492 crore in the same period last year, aided by 15 percent credit growth.
“The numbers were largely in line with expectations. Though there was some stress on the restructured assets side, the management has said that these had been frontloaded,” an analyst with a private equity research firm said, declining to be named.
Total advances for the bank rose by 15 percent to Rs 3,99,738 crore in the first fiscal quarter, compared to Rs 3,47,067 crore in the previous year.
The provisions for bad loans rose by 31.7 percent to Rs 956 crore in the June quarter, against Rs 1,344 crore, which was what analysts had expected.
ICICI Bank reported an improvement in its asset quality on a sequential basis. Gross non-performing assets (NPAs) fell by 10 basis points to 3.68 percent and net NPA slid by 3 basis points to 1.58 percent compared to the March quarter.
The bank, after reporting the key data, said it expected to see the rate of new bad loans slowing. The bank has in April said its fourth fiscal quarter that ended on March 31 was probably the worst in terms of asset quality.
In a conference call with analysts later, the bank said that the net restructured loans for the bank were Rs 126.04 billion as of June 30, 2015, against Rs 110.17 billion as of March 31, 2015. The bank added that there was “no pipeline” of cases to be restructured.
