Monday, January 24, 2011

ICICI Bank continues strong growth momentum in Q3, change is working









ICICI Bank has reported strong jump in its consolidated net profit during the third quarter of financial year 2010-11. The largest private sector bank in the country notched up consolidated PAT growth of 77.5% Y-o-Y to Rs. 2,039 crore (US$ 456 million) in Q3FY11 from Rs. 1,149 crore (US$ 257 million) in the corresponding quarter of the previous financial year i.e., Q3FY10.

ICICI Bank is India's second-largest bank, after the state-owned SBI, with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010.

The Mumbai-headquartered bank’s standalone net profit was up 30.50% at Rs 1,437 crore versus Rs 1,101.1 crore, during the said period.

The bank’s standalone net interest income grew 12.34% y-o-y to Rs. 2,312 crore in Q3FY11 from Rs. 2,058 crore in Q3FY10.

In another positive, its Current and Savings Account (CASA) ratio increased to 44.2% at December 31, 2010 from 39.6% at December 31, 2009.
Advances too grew by 15.3% Y-o-Y to Rs. 206,692 crore (US$ 46.2 billion) at December 31, 2010 from Rs. 179,269 crore (US$ 40.1 billion) at December 31, 2009.

For live chart: click here 

However, the bank’s Operating expenses (including direct marketing agency expenses) increased 27.2% to Rs. 1,707 crore (US$ 382 million) in Q3FY11 from Rs. 1,342 crore (US$ 300 million) in Q3FY10, primarily due to costs relating to new branches added over the last year and full impact of cost of erstwhile Bank of Rajasthan, during the quarter.

Provisions decreased 53.6% to Rs. 465 crore (US$ 104 million) in Q3-2011 from Rs. 1,002 crore (US$ 224 million) in Q3-2010.

The bank’s Net Non-Performing Asset (NPA) ratio also declined to 1.16% at December 31, 2010 from 2.19% at December 31, 2009.

In absolute terms, the bank’s Net NPA decreased by 34.9% to Rs. 2,873 crore (US$ 643 million) at December 31, 2010 from Rs. 4,416 crore (US$ 988 million) at December 31, 2009.

Its Provision coverage ratio increased to 71.8% at December 31, 2010 from 69.0% at September 30, 2010 (51.2% at December 31, 2009).

The bank’s CAR (capital adequacy ratio) stood at a solid 19.98%, with Tier-1 capital adequacy of 13.72%, as per Basel II norms. This is well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%.

Performance in the 9-Month period of FY 2010-11

The bank’s standalone Profit after tax for the 9-month period of FY 2010-11 grew by 22.5% to Rs. 3,699 crore (US$ 827 million) compared to Rs. 3,019 crore (US$ 675 million) during the same period of the previous fiscal year;

Consolidated PAT for the 9-month period increased by 36.0% to R 4,525 crore (US$ 1.0 billion) for 9M-2011 compared to Rs. 3,328 crore (US$ 744 million) for 9M-2010.

Change@work

According to a statement by the country’s largest private sector lender, it has continued with its strategy of pursuing profitable credit growth by leveraging on its improved fund mix, lower credit costs and efficiency improvement, and cost rationalization. In this direction, the Bank continues to leverage its expanded branch network to enhance its deposit franchise and create an integrated distribution network for both asset and liability products. 

ICICI Bank has 2,512 branches, the largest branch network among private sector banks in the country, as on December 31, 2010.

(To read another of our story on ICICI Bank, click here)

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