ICICI Bank Q2 net profit up 2.56 per cent at Rs1,040 crore

ICICI Bank, the country's second-largest lender, today reported a standalone profit after tax profit of Rs1,040 crore ($216 million) for the quarter ended 30 September 2009, up 2.56 per cent from the Rs1,014 crore ($211 million) reported in the quarter ended 30 September 2008.
 
At Rs1,040 crore, the standalone profit after tax for the quarter ended 30 September 2009 was up 18 per cent sequentially from the Rs878 crore reported in the previous quarter of the current fiscal (ended 30 June 2009), the bank said in a release.

Consolidated profit after tax increased 76 per cent to Rs1,145 crore for the quarter ended 30 September 2009 from Rs651 crore for the quarter ended 30 September 2008. This was driven primarily by the sharp reduction in losses of ICICI Prudential Life Insurance Company (ICICI Life) and increase in profit of other subsidiaries, the release said.

Net interest income ob ICICI Bank increased sequentially to Rs2,036 crore ($423 million) for Q2-Fy10 from Rs1,985 crore ($413 million) for Q1-FY10. Net interest income was lower compared to Q2-FY09 mainly due to the decrease in advances owing to the moderation in system credit growth, and decline in advances of overseas branches.

Net interest margin increased from 2.4 per cent in Q1-FY10 to 2.5 per cent in Q2-FY10.

Fee income increased sequentially to Rs1,387 crore ($288 million) in Q2-FY10 from Rs1,319 crore ($274 million) in Q1-FY10. "Fee income is in line with the reduced investment and mergers and acquisition activity in the corporate sector, reflecting the change in market conditions in the second half of fiscal 2009," the release noted.

Operating expenses (including direct marketing agency expenses) decreased 8 per cent to Rs1,379 crore ($287 million) in Q2-FY10 from Rs1,494 crore ($311 million) in Q1-FY10. The bank achieved a reduction in the cost/average asset ratio to 1.5 per cent in Q2-FY10 from 1.6 per cent in Q1-FY10.