ICICI Bank, the country’s largest private sector lender, on Friday reported 12 per cent growth in consolidated net profit at `3,419 crore for the three months through September, helped largely by healthy uptick in retail loans and higher margins from its international operations.
he bank reported robust numbers, which were in line with market expectations, despite the fact that the asset quality worsened during the reporting quarter with both the gross NPAs and net NPAs inching up.
The lender also announced that it is selling 9 per cent stake in its general insurance arm, ICICI lombard, to Toronto, Canada-based NRI Prem Watsa- promoted Fairfax Financial Holdings.
It will bring down the bank’s stake in the venture to 64 per cent and bring in `1,550 crore.
The lender reported 12 per cent uptick in post-tax profit on a standalone basis to `3,030 crore during the reporting period.
Its core net interest income rose 13 per cent to `5,251 crore, while non-interest income increased 10 per cent to `3,007 crore.
Helped by a healthy rise in international margins, which moved to 2 per cent from 1.58 per cent a year ago, the overall net interest margin (NIM) moved up by 0.10 per cent to 3.52 per cent and the bank’s managing director and chief executive Chanda Kochhar said she is confident of maintaining the NIMs at this level.
Domestic NIM stood at 3.84 per cent and Kochhar said the bank will continue to align the rates of interest with the improvement in cost of funds by passing benefits to borrowers.
The international margins were up due to refinancing of some borrowings to lower the cost, she added.
It registered an overall credit growth of 17 per cent during the quarter, helped by a 25 per cent surge in retail advances. The share of retail advances in the overall book has now risen to 44 per cent from 40 per cent a year ago.
The market, despite a selloff, lapped up ICICI shares, pushing the closing price to `277.15, up 2.10 per cent on the BSE, whose main gauge Sensex shed 0.70 per cent.
Commenting on the numbers, Ravi Shenoy of Motilal Oswal Securities said the results were on expected lines and it has retained a ‘buy’ call on the stock.
