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Saturday, October 27, 2012

ICICI Bank net jumps 30% in Q2 on strong interest income

Higher interest and dividend incomes helped boost ICICI Bank’s net profit by 30 per cent, to Rs 1,956 crore, in the July-September quarter.

India’s largest private sector lender had posted a net profit of Rs 1,503 crore in the year-ago period.

Net interest income (the difference between interest earned and expended) rose 35 per cent to Rs 3,371 crore (Rs 2,506 crore in Q2 FY12).

Non-interest income grew 17 per cent to Rs 2,043 crore (Rs 1,740 crore). Dividend income increased to Rs 160 crore ( Rs 120 crore).

Provisions towards bad loans increased 59 per cent to Rs 508 crore as compared with Rs 319 crore in September quarter last year.

“Our profitability will remain robust. However, we may see a decline in fee income. Net interest margins are likely to remain above the current levels, driven by international gains,” Chanda Kochhar, Managing Director and CEO, said.

On the bank’s exposure to media group Deccan Chronicle Holdings Ltd, she said the bank has classified its Rs 500-crore exposure to the ‘media company’ as non-performing. The bank has also made a provision covering 85 per cent of this exposure.

Net interest margin rose to 3 per cent from 2.61 per cent.

The ICICI Bank scrip ended 0.73 per cent lower to close at Rs 1,078.25 on the BSE on Friday.


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