ICICI Bank posts 40% jump in April-June net profit

ICC Bank It beat first-quarter expectations on Saturday as higher interest income and loan growth helped post a record net profit for India’s second-largest private lender.

Net profit increased by 39.7 per cent to ₹9,648 crore for the April-June quarter, beating the ₹9,180 crore expected by analysts, Refinitiv IBES data showed.

Net interest income – the difference between interest earned and paid – increased by 38 per cent to Rs.18,227 crore with ICICI’s net interest margin expanding to 4.78 per cent from 4.01 per cent in the previous year.

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Total advances to the Mumbai-based lender grew 20.6 percent, largely driven by retail loans, while deposits grew 17.9 percent.

Loan growth in India

Loan growth in India It has stayed in the double digits in recent months, despite a 250 basis point increase in interest rates since May last year.

Banks are looking to shore up their deposit base amid tight liquidity conditions, while at the same time cleaning up their balance sheets.

HDFC Bank This week recorded a 15.8 percent rise in loans in the first quarter from April to June, while deposits increased by 19.2 percent.

ICICI Bank’s asset quality was stable, with total non-performing assets reaching 2.76% at the end of June compared to 2.81% at the end of March.

The net NPA rate was unchanged on a quarterly basis at 0.48 percent.

The bank made provisions and contingencies of Rs.1,292 crore, up from Rs.1,144 crore in the previous year.