ICICI Bank Q2 net rises 20% to Rs2,352 crore

ICICI Bank, India's biggest private sector lender, has reported a net profit to Rs2,352 crore for the quarter ended September (Q2 FY14).

This 20 per cent year-on-year increase was led by strong growth in revenues from the consumer loans segment, mainly home and car loans.

The growth has been achieved after fully providing for its mark-to-market provisions of Rs279 crore on its investment portfolio, the bank said.

Reserve Bank of India has allowed banks to spread such losses over three quarters.

ICICI Bank's operating profit excluding from the treasury increased 31 per cent to Rs3,967 crore during the quarter, from Rs 3,022 crore a year earlier.

Net interest income (NII) increased 20 per cent to Rs4,044 crore during the July-September 2013 quarter from Rs3,371 crore in the year-before quarter. Net interest margin (NIM) increased to 3.31 per cent for Q2FY14, from 3.0 per cent in the previous-year quarter.

ICICI Bank also maintained its CASA (current account to savings account) ratio at 43.3 per cent, thereby keeping cost of funds low.

The bank also saw its fee income increase by 17 per cent to Rs1,994 crore while its cost to income ratio declined to 37.3 per cent in the second quarter from 41 per cent in the year-ago period.

Despite the squeeze on liquidity with the Reserve Bank of India raising short-term interest rates, ICICI Bank has managed to expand its loan book and fee income, expand net interest margins (NIMs) while at the same time keeping asset quality stable.

ICICI Bank expects even stronger growth in the retail segment in the current quarter, although the corporate side is witnessing sluggish growth.