New Delhi: Country's largest private sector
lender ICICI Bank on Saturday said home, car and corporate loans
would drive credit growth in the second half of 2009-10.
"Growth drivers are going to be housing loan, car loans
and the entire corporate finance, project finance and
infrastructure as there is a pick up in economic activity,"
ICICI Bank managing director Chanda Kochhar told a news agency on the
sidelines of HT Leadership Summit.
"In these specific sectors, we are expecting double
digit (credit) growth, though overall credit expansion was
likely to be in single digit," she said, adding, the increase
in loan portfolio should be seen in the backdrop of bank's
decision to reduce unsecured loans.
Advance of ICICI Bank at the end of September 2009
stood at Rs 1,90,860 crore against Rs 2,21,985 crore at the
end of September 2008, registering a decline of 14 percent.
For the quarter ended September 2009, ICICI Bank reported
2.6 percent jump in net profit at Rs 1,040 crore from Rs
1,014 crore in the same period a year-back.
Consolidated net profit rose 76 percent in the quarter
to Rs 1,144.57 crore on lower losses in life insurance
business and higher profits in other subsidiaries.
However, the total income declined to Rs 14,595.85
crore during the July-September quarter from Rs 15,590.46
crore in the same period a year ago.
The bank's net non-performing assets, as on September
30, stood at 2.36 percent compared to 1.91 percent in the
year-ago period.
The lender expects NPAs to come down further in the
remaining part of the year and has made a lower provisioning
in the second quarter at Rs 1,071 crore against Rs 1,324
crore in the first quarter.
The bank would also focus on increasing its current and
savings account ratio, which currently stands at 36.9 per
cent compared to 30 percent in the year-ago period.
The net interest margin of ICICI Bank increased from 2.4
per cent in the first quarter to 2.5 percent in the second
quarter. The bank has a capital adequacy ratio of 17.7 per
cent.
Bureau Report
First Published: Saturday, October 31, 2009, 18:16