ICICI Bank Q2 net up 22 per cent

Total income basis increased to Rs 9,897.17 cr during the quarter from Rs 7,887.03 crore.

Country’s second largest lender ICICI Bank,which today posted a 22 percent rise in Q2 net,driven by a near 30 percent spike in corporate loans and an uptick in retail advances coupled with lower bad loan provisions,is bullish on profitability and advances growth.

The largest private lender said its stand-alone net profit in the September quarter jumped 22 percent to Rs 1,503 crore from Rs 1,236 crore in the year-ago period,while the net interest income (NII) grew nearly 14 percent to Rs 2,506 crore from Rs 2,204 crore,while the fee income rose 7 percent to Rs 1,700 crore from Rs 1,590 crore.

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Total income basis increased to Rs 9,897.17 crore during the quarter from Rs 7,887.03 crore.

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Attributing the better-than expected number to all- round growth,Managing Director and Chief Executive Chanda Kochhar said in a conference call this afternoon that “our loan growth was diversified in the September quarter,being led by corporate loan book which grew nearly 30 percent,primarily driven by working capital advances.

“What was significant was the 4 percent growth in the retail loan book,because for the past two years,we had not been consciously growing our retail assets at all. A part of the advances growth came from sanctions made in the previous quarter.”

Significantly,the bank’s net non-performing assets as a percentage of total loans fell sharply by 50 percent to 0.93 percent at the end of the reporting quarter at Rs 319 crore,from Rs 641 crore or 1.62 percent a year earlier,driven by a major improvement on the retail and non-secured loan books. Its provision coverage ratio rose to 78 percent during the period,well above the RBI-mandated 70 percent.

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