ICICI Bank posts 68% rise in net

>> Sunday, July 26, 2009

Helped by strong treasury operations, ICICI Bank, the country’s second largest lender, today reported a 68 per cent rise in consolidated net profit to Rs 1,036 crore during the quarter-ended June, 2009, as against Rs 617 crore in the corresponding period last year.

The increase was despite a 0.2 per cent decline in consolidated income to Rs 14,615 crore, which was attributed to market-linked businesses such as insurance.

On a standalone basis, beating analyst estimates, the bank reported 20.63 per cent rise in net profit to Rs 878.22 crore.

Total income fell 2 per cent to Rs 9,223 crore and net interest income was down 5 per cent to Rs 1,985 crore during the quarter ended June 30.

The bank attributed the decrease in net interest income to the 11.6 per cent fall in advances. Though treasury income of Rs 714 crore during April-June this year, as against a Rs 594-crore loss in the corresponding period last year, helped the bank, an all-round reduction in cost also boost its bottom-line in the first quarter of 2009-10.

What also helped was a write back of some of the mark-to-market losses that the bank had taken on its books last year.

With the bank going slow on fresh lending, advances at the end of June 2009 were estimated at Rs 1,98,101.87 crore, as against Rs 2,24,145.92 crore a year ago. Similarly, assets fell 6.78 per cent to Rs 3,67,418.92 crore.

ICICI Bank, which has grown 25 to 30 per cent in the past, has had to slow down fresh lending, especially in the unsecured retail segment, and the level of advances and assets is now at the level seen at the end of June 2007.