The Hindu Business Line : ICICI Bank net rises 17 pc

The numbers
Total income was Rs 6,316.19 crore in the first quarter from Rs 4,206.49 crore.
The Net Interest Income (NII) of the bank increased by 52 per cent to Rs 1,475 crore from Rs 969 crore. Other income also rose to Rs 1,277.56 crore from Rs 1,090.5 crore.

Mumbai , July 22

The net profit of ICICI Bank, the largest private sector bank in the country, increased 17 per cent to Rs 620.01 crore in the quarter ended June 30, 2006, from Rs 530.01 crore in the same quarter last fiscal.

The growth in profit was mainly on account of increase in advances and the consequent rise in the net interest income.

Total income was up at Rs 6,316.19 crore in the first quarter from Rs 4,206.49 crore.

The net interest income (NII) of the bank increased by 52 per cent to Rs 1,475 crore from Rs 969 crore. Other income also rose to Rs 1,277.56 crore from Rs 1,090.5 crore.

Ms Kalpana Morparia, Joint Managing Director, said the increase in NII and fee income was offset by a fall in treasury income and higher provisioning. While fee income rose by 50 per cent to Rs 985 crore from Rs 658 crore, treasury earnings fell to Rs 88 crore from Rs 183 crore.

Total expenditure increased to Rs 5,084.83 crore from Rs 3,235.71 crore.

Provisions and contingencies increased by 62 per cent to Rs 482.78 crore (Rs 297.88 crore).

Ms Morparia said the increase in provision was purely a function of higher level of general provision after the Reserve Bank of India increased the risk weightage on standard assets.

The bank's net interest margin for the quarter was 2.5 per cent, marginally down from 2.6 per cent. This was despite little or no securitisation in the first quarter, due the change in the guidelines, she said.

"Re-pricing of loan products has helped the bank to maintain the margin. But the full effect of it will come from the second quarter," she said. ICICI Bank raised rates on retail and corporate loans and its benchmark prime-lending rate by 50 basis points in June 2006.

Total advances increased by 50 per cent to Rs 1,47,184 crore (Rs 97,909 crore). Retail advances increased by 59 per cent to Rs 98,687 crore (Rs 62,063 crore). Retail assets constitute 67 per cent of advances.

Total deposits increased by 61 per cent to Rs 1,83,006 crore (Rs 1,13,778 crore).

The loan portfolio of international branches increased to Rs 13,400 crore (Rs 7,000 crore). The bank now operates in 13 countries.

The Capital Adequacy Ratio was 12.46 per cent (12.04 per cent). The proportion of net non-performing assets to total assets was 0.8 per cent (2 per cent). The bank's net restructured assets were Rs 5,469 crore, down from Rs 6,209 crore last year. It has raised upper Tier II capital of Rs 1,250 crore in the first quarter. This fiscal it plans to raise Tier I capital through innovative debt instruments and upper Tier II capital, in foreign currency and local currency, after the RBI relaxed the guidelines for banks to raise long-term capital, according to Ms Morparia.

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