ICICI Bank net up 27%

ICICI Bank has reported a 27 per cent jump in its net profit to Rs 431 crore in the first quarter of 2004-05.

This comes largely on the back of a surge in retail lending, even as treasury income fell by 64 per cent to Rs 93 crore, against Rs 261 crore in the corresponding quarter last year.

Retail assets increased 62 per cent to Rs 36,583 crore, up from Rs 22,535 crore as at the end of June 2003. The private sector bank's net profit was higher by Rs 28.99 crore on account of it having entered into rupee derivative transactions as part of its trading operations.

Given the growing derivatives market and the bank's increasing volumes in this activity, ICICI Bank recognises the positive impact of marking-to-market its portfolio on the profit and loss account. "Going forward we will continue to mark to market the portfolio," ICICI Bank deputy managing director Kalpana Morparia said.

The bank's core operating profits increased by 90 per cent to Rs 1,196 crore against Rs 838 crore in the same quarter last year.

ICICI Bank has declared a 75 per cent dividend for the year ended March 2004. The board set September 4 as the record date for payment of dividend. The price of the scrip today fell marginally by 0.57 per cent over yesterday to close at Rs 261.2 on the Bombay Stock Exchange.

The bank's total income rose to Rs 2,938.55 crore in the first quarter of 204-05 against Rs 2,853.49 crore in the corresponding quarter last year.

Net interest income increased by 39 per cent to Rs 631 crore (Rs 455 crore) while fee-based income increased to Rs 418 crore, up 77 per cent against June 2004's figure of Rs 236 crore.

The consolidated profit after tax increased to Rs 400 crore in the first quarter of fiscal 2005 against Rs 337 crore in the corresponding quarter last year.

This follows ICICI Lombard General Insurance Company having posted a higher net profit of Rs 20 crore during the quarter against Rs 6 crore in the corresponding quarter last year. The bank's life insurance venture -- ICICI Prudential Life -- on the other hand, posted a loss of Rs 30 crore.

The bank's total deposits went up by 24 per cent to Rs 66,780 crore (Rs 53,853 crore), while total advances rose to Rs 65,266.01 crore up 16.67 per cent from Rs 54,379.91 crore. The bank's average cost of deposits in the current quarter has fallen from six per cent in Q1 2004 to 4.5 per cent in Q1 2005.

The bank replaced around Rs 900 crore of high-cost deposits in the financial year ended March 2004 and intends to replace another Rs 900 crore in the current year. The average cost of the old borrowings were in excess of 10 per cent.

ICICI Bank's capital adequacy ratio as on June 2004 rose to 15.21 per cent against 11.15 per cent in June 2003. Its non performing assets fell to 2.7 per cent against 4.9 per cent in the corresponding quarter last year.

The bank's net restructured assets stood at Rs 7,264 crore, down from Rs 10,491 crore in the corresponding quarter last fiscal. Further, during the current quarter, the bank repaid Rs 1,800 crore of erstwhile ICICI's liabilities.