ICICI Bank reported a 68 per cent rise in consolidated net profit to Rs 1,036 crore during the quarter-ended June, 2009, as against Rs 617 crore in the corresponding period last year.
The increase was despite a 0.2 per cent decline in consolidated income to Rs 14,615 crore, which was attributed to market-linked businesses such as insurance.
Total income fell 2 per cent to Rs 9,223 crore and net interest income was down 5 per cent to Rs 1,985 crore during the quarter ended June 30.
The bank attributed the decrease in net interest income to the 11.6 per cent fall in advances. Though treasury income of Rs 714 crore during April-June this year, as against a Rs 594-crore loss in the corresponding period last year, helped the bank, an all-round reduction in cost also boost its bottom-line in the first quarter of 2009-10.
What also helped was a write back of some of the mark-to-market losses that the bank had taken on its books last year.
With the bank going slow on fresh lending, advances at the end of June 2009 were estimated at Rs 1,98,101.87 crore, as against Rs 2,24,145.92 crore a year ago. Similarly, assets fell 6.78 per cent to Rs 3,67,418.92 crore.
Ms Chanda Kochhar, Managing Director and CEO, said the bank saw a healthy growth in non-interest income and fee income. The bank maintained its Net Interest Margin at the same levels and controlled costs, all of which helped it post higher profits.
The NIM was maintained at 2.4 per cent.
The bank’s employee cost fell to Rs 466 crore (Rs 523 crore) and the direct market expenses fell to Rs 27 crore (Rs 228 crore).
The share of low-cost CASA (current account and savings account) increased to 30.4 per cent, as on June 30, 2009, from 27.6 per cent last year.
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