Twitter
Advertisement

ICICI Bank net up 21%, recast assets spurt

ICICI Bank, the country's largest private sector lender, reported a 21% jump in net profit for the quarter ended March at Rs 2,304 crore, mainly driven by higher net interest income (NII) and better margins.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

ICICI Bank, the country’s largest private sector lender, reported a 21% jump in net profit for the quarter ended March at Rs 2,304 crore, mainly driven by higher net interest income (NII) and better margins.

At Rs 3,803 crore, NII – the difference between interest earned on loans and interest paid on deposits – was up 22%.

The net interest margin (NIM) – NII expressed as a percentage of the average assets held by the bank during the quarter – was at 3.3%, compared with 3.01% in the same quarter the previous year.

Total advances were up 14% and total deposits up 14.5%.

Analysts said the results were broadly in line with expectations.

However, restructured assets jumped by Rs 5,315 crore as the bank adopted new regulatory guidelines. The pipeline of restructured assets stood at Rs 780 crore, the bank said.

This, coupled with lower loan growth, pulled down the bank’s shares 2.82% to Rs 1,144.30 apiece in BSE trading.

Chanda Kochhar, MD & CEO of ICICI Bank, said the target for this fiscal is to improve NIMs by 10 basis points (bps). She expects the domestic loan book to grow 20% and the international loan book to grow  10% this fiscal.

The bank’s gross non-performing assets (NPA) ratio declined 36 bps to 2.68%, while the net NPA ratio was flat. Provisions were down 2% at `460 crore, which contributed to the healthy profit.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement