ICICI Bank profit result a record amid faster loan growth
(4 August 2015 – India) Loan and asset quality improved last quarter for ICICI Bank Ltd, which posted a 12 percent climb in net income for the three months ended 30 June, 2015.
ICICI reported a profit of 29.8 billion rupees (A$637.8 million), as chief executive Chanda Kochhar focuses on boosting consumer lending while cutting bad debt.
In April Kochhar told reporters that ICICI’s fiscal year ended 31 March was probably the worst in terms of nonperforming assets.
The lender posted the lowest quarterly profit growth in five years in the three months to March.
Its total outstanding loans increased 15 percent to 4 trillion rupees in June from a year earlier, exchange filings showed.
Advances grew 14.4 percent in the March quarter.
The company’s net interest margin, a measure of lending profitability, widened to 3.54 percent from 3.4 percent a year earlier.
Net interest income, or revenue from lending minus payments on deposits, rose 14 percent to 51.2 billion rupees.
The bank’s gross bad-loan ratio narrowed to 3.68 percent from 3.78 percent in the three months ended 31 March.
ICICI’s capital-adequacy ratio stood at 16.37 percent, the filings showed, compared with a requirement of at least 9 percent under global Basel III rules.
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