ICICI Bank logs 25% rise in consolidated net

ICICI Bank has reported a 25 per cent increase in consolidated net profit at Rs 7,643 crore in FY12, against Rs 6,093 crore in FY11.

The consolidated net profit, among others, includes financial performance of subsidiaries such as ICICI Prudential Life Insurance, ICICI Bank UK, ICICI Lombard General Insurance, ICICI Home Finance, and ICICI Securities Limited.

Ms Chanda Kochhar, MD and CEO, ICICI Bank, said some of the subsidiaries, such as ICICI Bank UK and ICICI Prudential Life Insurance, have declared maiden dividends. In FY12, the bank received dividends aggregating Rs 740 crore.

The bank's consolidated net profit for FY12 and Q4-FY12 includes the impact of the additional pool (third-party motor pool) losses of Rs 503 crore, in line with its shareholding in ICICI Lombard General Insurance. Following the insurance regulator directing the dismantling of the pool, ICICI General has decided to recognise the additional liabilities of the pool in the current year. Hence, the general insurer reported a loss of Rs 416 crore in FY12, against a loss of Rs 80 crore the previous year.

ICICI Prudential Life Insurance reported a 71 per cent jump in net profit at Rs 1,384 crore in FY12, against Rs 808 crore the previous year.

The bank's board has recommended a dividend of Rs 16.50 per equity share (Rs 14 per share last year).

Ms Kochhar attributed the higher dividend to healthy growth in profit and strong capital position (capital adequacy ratio at 18.52 per cent as on March-end 2012).

Year-on-year, the bank's deposits increased by 13 per cent to Rs 2,55,500 crore (Rs 2,25,602 crore as on March-end 2011) and loans were up by 17 per cent to Rs 2,53,728 crore (Rs 2,16,366 crore).

A break-up of the loan book shows that, of the total loans, retail loans accounted for 36 per cent; domestic corporates 23 per cent; overseas loans 27 per cent; SMEs 5 per cent and rural loans 9 per cent.

“In FY2013, we expect a credit growth of 20 per cent and a deposit growth of 16-18 per cent….. Demand for loans is not just a function of interest rates, it is also driven by clarity on policy and statutory approvals,” said Ms Kochhar.

On overseas loans, Ms Kochhar explained that volatility in the rupee-dollar exchange rate is changing the quarterly disbursement numbers substantially, making it difficult to project loan growth. The outstanding net restructured loan book stood at Rs 4,256 crore as at March-end 2012. The net addition to the restructured loan portfolio was Rs 1,200 crore in the reporting quarter.

“Bulk of the loan restructuring has already been done…..Our asset quality outlook is stable. We don't expect any shocks,” said Ms Kochhar.

kram@thehindu.co.in