MUMBAI: ICICI BankBSE -0.73 %, the country's largest private sector bank on Friday reported a profit after tax (PAT) of Rs 1960 crore for the second quarter versus an ET Now poll estimate of Rs 1869 crore. This is a 30.4% growth in profit on a year-on-year basis, bolstered by strong loan growth and higher fee-based income, it said on Friday.
ICICI aims to grow its domestic loan book by around a fifth this fiscal year ending March 2013, led by consumer loans and working capital, and will be particularly cautious in unsecured retail lending and project finance, where risks are higher, it has said.
The Net interest income (NII) stood at Rs 3371 crore versus a poll estimate of Rs 3242.4 crore. The grossnon-performing assets (NPAs) came in at 3.54%. The net NPAS were at 0.78% versus 0.71% on a quarter-on-quarter basis.
ICICI aims to grow its domestic loan book by around a fifth this fiscal year ending March 2013, led by consumer loans and working capital, and will be particularly cautious in unsecured retail lending and project finance, where risks are higher, it has said.
The Net interest income (NII) stood at Rs 3371 crore versus a poll estimate of Rs 3242.4 crore. The grossnon-performing assets (NPAs) came in at 3.54%. The net NPAS were at 0.78% versus 0.71% on a quarter-on-quarter basis.
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Net interest margins, a key gauge of profitability for banks, were steady at 3 percent.
ICICI's results suggest that profits are more likely to grow at private banks than at government-owned banks, which account for 70 percent of the market in India, but whose lending decisions are not always driven by commercial considerations, analysts say.
Smaller private lenders HDFC BankBSE 0.01 % Ltd,Axis BankBSE -0.60 % Ltd and Yes BankBSE -0.82 % Ltd all recently reported strong quarterly profit growth.
Earlier on Friday, Punjab National BankBSE -6.88 % posted an 11.5 percent drop in quarterly net profit with bad loans as a percentage of total assets rising 2.69 percent in the September quarter from 0.84 percent a year ago.
The ratio of bad loans at ICICI dropped to 0.78 percent compared with 0.93 percent a year ago.
So far this year, ICICI shares have risen nearly 60 percent, outpacing 45 percent growth in overall bank stocks and the broader Indian market's 23 percent gain. Its current market value is close to $23.3 billion.
The bank suffered badly from the global financial crisis as many consumer loans went into default, but since then it has tightened lending rules and improved the quality of its loan book.
The bank's stock gained momentum post the Q2 results and rose 1% to Rs 1100. At 12:44 PM the stock was trading at Rs 1090.10, up 0.36% on the Bombay Stock Exchange.
ICICI's results suggest that profits are more likely to grow at private banks than at government-owned banks, which account for 70 percent of the market in India, but whose lending decisions are not always driven by commercial considerations, analysts say.
Smaller private lenders HDFC BankBSE 0.01 % Ltd,Axis BankBSE -0.60 % Ltd and Yes BankBSE -0.82 % Ltd all recently reported strong quarterly profit growth.
Earlier on Friday, Punjab National BankBSE -6.88 % posted an 11.5 percent drop in quarterly net profit with bad loans as a percentage of total assets rising 2.69 percent in the September quarter from 0.84 percent a year ago.
The ratio of bad loans at ICICI dropped to 0.78 percent compared with 0.93 percent a year ago.
So far this year, ICICI shares have risen nearly 60 percent, outpacing 45 percent growth in overall bank stocks and the broader Indian market's 23 percent gain. Its current market value is close to $23.3 billion.
The bank suffered badly from the global financial crisis as many consumer loans went into default, but since then it has tightened lending rules and improved the quality of its loan book.
The bank's stock gained momentum post the Q2 results and rose 1% to Rs 1100. At 12:44 PM the stock was trading at Rs 1090.10, up 0.36% on the Bombay Stock Exchange.
(Source: economictimes.indiatimes.com)
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