Aided by higher interest income and other income growth,
India's largest private sector lender ICICI Bank on Friday reported a
forecast beating 31% year-on-year jump in its fourth quarter (Jan-March) net profit
at Rs 1,902 crore.
Net interest income (NII) or the difference between interest
earned and paid out rose 24% to Rs 3,105 crore. Loan book expanded by 17% y-o-y
to Rs 2.54 lakh crore. However, it was a muted growth at just 3% during the
Jan-March period, the peak of so-called busy season (Oct-March).
The net interest margin (NIM) rose to 3.01% from
2.70% in the previous quarter. Other income climbed 17% to Rs
2,228 crore.
"Profit has come from stable and good improvement in
the net interest income," Chanda Kochhar, MD, ICICI Bank said in a
concall.
"It was all organic growth unlike in FY11. Both
corporate and retail loans added to our loan expansions. Retail book grew by 8%
while corporate loans rose 26%. Our domestic loans will grow by 20% in FY13. However,
it is difficult to predict the growth of our international loan book."
However, deposits grew at a slower pace at around 13% y-o-y
to Rs 2.55 lakh crore during the quarter. In FY2010-11, the bank had
acquired the Bank of Rajasthan. This had led higher growth in
loans.
During the quarter, the bank's net non-performing (NPA)
ratio improved to 0.62% compared with 0.94% in Q3, FY12. Gross NPA ratio too
fell from 1.11% to 0.73%.
Moreover, overall asset quality has improved during the 12
month period. Consequently, provisions and contingencies dropped to 1,583 crore
compared with 2,287 crore. Interestingly, the same went up to Rs 469 crore as
against Rs 341 crore in Q3 despite a sequential fall in NPAs.
The bank has a strong capital adequacy ratio of 18.52%, way
above the Reserve Bank of India's mandated 9% mark. This means, the lender is
sitting on excess unused capital. However, the bank did not give any specific
direction for its growth plans.
"We will continue to invest in our channels. We will
grow at a prudent manner," Kochhar replied to a Moneycontrol.com's query
in the tele conference.
Meanwhile, the bank's restructured loan book stood at Rs
4,256 crore in FY12 as against Rs 1970 crore in FY11. The bulk of the
restructuring, according to the MD, took place in Q3 and Q4. The lender does
not see any more threat from its restructured assets in FY13.
For the full fiscal year, net profit shot up 26% y-o-y to Rs
6,465 crore while the consolidated net profit increased by 25% to 7,643. The
bank has declared a dividend of Rs 16.50 per share.
"Our overseas subsidiaries have given good dividend
income in 2011-12. For the first time, our UK subsidiary has turned in profit.
We recorded a dividend income of Rs 280 crore in Q4 compared to Rs 75 crore in
Q3. It stood at Rs 740 crore for the full year," Kochhar said.
The rise in dividend income from its subsidiaries led to a
spurt in the bank's other income.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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