ICICI Bank clocks a 14.6% surge in profit on treasury gains
ICICI Bank, India's second largest private sector lender, beat Street expectations with a 14.6% rise in first-quarter net profit at Rs 11,059 crore, buoyed by strong treasury income.
Analysts polled by Bloomberg had forecast on average a net profit of Rs 10,517 crore. The lender recorded a net profit of Rs 9,648.20 crore a year ago.
Net interest income (NII) increased by 7.3% on-year to Rs 19,553 crore in the June quarter from Rs 18,227 crore a year earlier. Net interest margin fell to 4.36% as of June 30 from 4.78% a year ago. Margin also declined from 4.40% in the March quarter.
Treasury income grew to Rs 613 crore from Rs 252 crore a year ago. «We would like to grow in a risk calibrated fashion, we would like to work with good customers, and clearly loans and deposits go hand in hand,» said Sandeep Batra, executive director, ICICI Bank.
«The wholesale deposits in the system have remained sticky during the first quarter and we have seen some banks increasing retail deposits. It is also the dynamics of the new Liquidity Coverage Ratio (LCR) guidelines that have come into play. This will have an impact on deposit costs, loan growth and lending rates; it is a dynamic situation,» he said.
Slippages Rise Marginally
Total advances in the June quarter increased by 15.7% on-year to Rs 12.23 lakh crore.
The retail loan portfolio increased by 17.1% on-year, while the corporate portfolio saw a growth of 10.3% from last year. Total deposits grew by 15.1% on year to Rs 14.26 lakh crore.
«There has been a marginal
