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ICICI Bank edges lower after Q1 earnings

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Capital Market
Last Updated : Jul 31 2014 | 11:39 PM IST

ICICI Bank fell 0.31% to Rs 1,485 at 14:21 IST on BSE after net profit rose 16.76% to Rs 2655.30 crore on 13.26% increase in total income to Rs 14616.71 crore in Q1 June 2014 over Q1 June 2013.

The result was announced during trading hours today, 31 July 2014.

Meanwhile, the BSE Sensex was down 108.91 points, or 0.42%, to 25,978.51.

On BSE, so far 2.42 lakh shares were traded in the counter, compared with an average volume of 2.36 lakh shares in the past one quarter.

The stock hit a high of Rs 1,505 and a low of Rs 1,481.95 so far during the day. The stock hit a record high of Rs 1,590.35 on 16 May 2014. The stock hit a 52-week low of Rs 758.80 on 28 August 2013.

The stock had outperformed the market over the past one month till 30 July 2014, rising 5.01% compared with 2.65% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.66% as against Sensex's 16.37% rise.

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The large-cap company has an equity capital of Rs 1156.43 crore. Face value per share is Rs 10.

The bank's net interest income increased 18% to Rs 4,492 crore in Q1 June 2014 over Q1 June 2013.

Non-interest income increased by 15% to Rs 2850 crore in Q1 June 2014 over Q1 June 2013.

Cost-to-income ratio reduced to 38.4% in Q1 June 2014 from 39.4% in Q1 June 2013.

Provisions and contingencies rose 22.40% to Rs 726.08 crore in Q1 June 2014 over Q1 June 2013.

Total advances increased by 15% to Rs 347067 crore at 30 June 2014 from Rs 301370 crore at 30 June 2013. The year-on-year growth in domestic advances was 17%. The bank has continued to see healthy growth in its retail disbursements resulting in a year-on-year growth of 26% in the retail portfolio at 30 June 2014.

At 30 June 2014, savings account deposits increased by 16% year-on-year to Rs 102736 crore while current account deposits increased by 13% year-on-year to Rs 41678 crore. The bank's current account, savings account (CASA) ratio was 43% at 30 June 2014. The average CASA ratio for Q1 June 2014 was 39.5% compared to 39% for Q1 June 2013. Total deposits increased by 15% year-on-year to Rs 335767 crore at 30 June 2014.

The bank's capital adequacy at 30 June 2014 as per Reserve Bank of India's guidelines on Basel III norms was 17% and Tier-1 capital adequacy was 12.23%, well above regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the bank for 30 June 2014 do not include the profits for the quarter ended 30 June 2014. Including the profits for Q1 June 2014, the capital adequacy ratio for the Bank as per Basel III norms would have been 17.39% and the Tier I ratio would have been 12.62%.

Net non-performing assets at 30 June 2014 were Rs 3474 crore compared to Rs 3301 crore at 31 March 2014 and Rs 2472 crore at 30 June 2013. The net non-performing asset ratio was 0.87% at 30 June 2014 compared to 0.82% at 31 March 2014 and 0.69% at 30 June 2013. The bank's provision coverage ratio, computed in accordance with RBI guidelines, was 68.4% at 30 June 2014. Net loans to companies whose facilities have been restructured were Rs 11265 crore at 30 June 2014 compared to Rs 10558 crore at 31 March 2014 and Rs 5915 crore at 30 June 2013.

ICICI Prudential Life Insurance Company's (ICICI Life) profit after tax for Q1 June 2014 was Rs 382 crore compared to Rs 364 crore for Q1 June 2013. ICICI Life's annualised premium equivalent (APE) was Rs 659 crore in Q1 June 2014 compared to Rs 541 crore in Q1 June 2013. During Q1 June 2014, ICICI Life has seen an increase in its assets under management to Rs 86110 crore.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector during April-May 2014. The gross premium income of ICICI General was Rs 1847 crore in Q1 June 2014 compared to Rs 1859 crore in Q1 June 2013. ICICI General's profit after tax for Q1 June 2014 was Rs 72 crore compared to Rs 203 crore in Q1 June 2013. The decrease in profit after tax on a year-on-year basis was due to lower realised investment income in Q1 June 2014.

ICICI Bank is a leading private sector bank in India.

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First Published: Jul 31 2014 | 2:25 PM IST

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