Mumbai: A huge Rs 403 crore gain from treasury income, coupled with a spurt in interest income and margins, pushed up the standalone net profit of ICICI Bank by 25.3 percent to Rs 2,274 crore in the April-June quarter.
The country's largest private bank had reported net profit of Rs 1,815.05 crore in the year-ago period.
It booked a Rs 403 crore income from treasury operations in the first quarter of 2013-14, as against Rs 21-crore loss in the year-ago period, which was the major reason for the spike in overall profit.
A healthy 20 percent spurt in key net interest income, which is the difference between interest paid and interest earned, at Rs 3,820 crore during the quarter pushed up the total income of the bank 13 percent to Rs 12,905 crore.
Its non-interest income jumped 32 percent year-on-year to Rs 2,484 crore, driven by treasury gains and higher dividends from subsidiaries.
This has had a positive impact on the net interest margin (NIM), which is a key gauge of profitability for banks, pushing it up to 3.27 percent in the quarter from 3.01 percent a year ago, ICICI Bank Managing Director and chief executive Chanda Kochhar told reporters at a conference call.
The domestic margins stood at higher 3.63 percent in the quarter, she said.
Kochhar also attributed the good set of numbers to a sharp spurt in dividend and non-interest incomes as well as treasury incomes.
While the net interest income rose from Rs 3,193 crore to Rs 3,820 crore, non-interest income jumped 32 percent from Rs 1,880 crore to Rs 2,484 crore and fee income rose from Rs 1,647 crore to Rs 1,793 crore.
Dividend and other incomes rose to Rs 288 crore from Rs 254 crore, out which treasury income was Rs 403 crore from a loss of Rs 21 crore a year back.
The market however did not lap up the numbers and the bank scrip lost more than 2 percent to close at Rs 907.50 on the BSE, pulling down the Bankex by 1.84 percent to 11,440.96 points. The benchmark BSE Sensex closed flat with a negative bias.
As for ICICI's rivals, Axis Bank has posted better-than- expected 22.5 percent growth in net profit with a marginal increase in bad loans.
HDFC Bank maintained its target of over 30 percent net profit increase. Its non-performing loans also ticked up in the quarter.
The life insurance arm ICICI Pru chipped with a net profit of Rs 364 crore, up from Rs 349 crore, while the general insurance arm ICICI Lombard contributed Rs 203 crore of net, up from Rs 83 crore a year. The overall net was also helped by the 75 million Canadian dollar repartition from its subsidiary there, Kochhar said.
This was reflected in the Q1 consolidated numbers which logged in higher profit at 32 percent at Rs 2,747 crore, up from Rs 2,077 crore a year ago.
Total advances increased 12 percent to Rs 3,01,370 crore at the end of June quarter, which is an addition of Rs 10,000 crore during the quarter, Kochhar said.
The bank also saw a marginal rise in its net non- performing assets to 0.82 percent of its total assets to Rs 2,472 crore, compared to 0.71 percent a year earlier.
Accordingly, provisioning against bad loans during the quarter also rose 27 percent to Rs 593 crore, as against Rs 466 crore in the year-ago period.
In absolute terms, gross non-performing assets (NPAs) rose marginally to around Rs 10,010 crore or 3.54 percent from 3.23 percent a year back.
The bank added Rs 829 crore to the CDR book during the quarter taking its overall restructured asserts to Rs 5,915 crore, as against 5,315 crore a year back and booked fresh slippages worth Rs 1,116 crore. It made a recovery of Rs 310 crore.
Kochhar also said the bank will be add some Rs 1,200 crore in fresh recast loan book this quarter but added that the worst is behind her bank on the CDR front.
But, she attributed the spike in provisioning to an additional Rs 200 crore provisions made over and above the mandated limits.
Capital adequacy of the bank as per Basel III norms stood at 17.04 percent at the end of the first quarter, Kochhar said.
Domestic credit grew 14.4 percent driven by retail loans. Outstanding home mortgages (home loans 36 percent) and auto loans (17 percent) rose 20 percent and 21 percent respectively, she said.
Deposits grew at a slower pace by 8 percent year-on-year to around Rs 2.91 lakh crore. However, the share of current and savings account (Casa) improved to 43.2 percent from 41.90 percent.
Kochhar also said the bank has been growing down its commercial vehicle loan book as a result this account saw a decline of 19 percent. Total retail loan book grew 26.6 percent during the quarter, she said, expressing confidence that her bank will grow higher than the industry average by 2-3 percent.
Total corporate loan book grew 16 percent, with international book logging in 8 percent and domestic book posting 20 percent.
On the planned shut down of two British branches, she said these two branches just constituted under 2 percent of the total deposit base from its 11 branches in England.
The bank added 250 branches, including 150 low cost rural branches, and 421 ATMs to its network during the quarter, taking its total branches to 3,350 and ATMs to 10,902.