Six months ended Sept 96 Sept 97
Net profit 20.39 28.07
Total Income 114.07 163.34
Interest 62.00 84.87
expenditure 5.36 20.96
Gross profit 36.70 57.50
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Depreciation 3.12 5.24
Tax 9.01 13.76
The net profit of ICICI Banking Corporation has jumped by 38 per cent to Rs 28.07 crore for the six months ended September 30, 1997, as against Rs 20.39 crore earned during the corresponding period.
During the same period, the gross profit of the bank stands at Rs 57.51 crore as against Rs 36.70 crore recorded in corresponding period.
The interest income of the bank jumped to Rs 123.53 crore (Rs 94.41 crore), the other income stood at Rs 39.81 crore (Rs 19.66 crore) taking the total income to Rs 163.34 crore (Rs 114.07 crore).
Interest expenses grew to Rs 84.87 crore (Rs 62 crore), other expenditure grew to Rs 20,96 crore (Rs 15.36 crore) taking the total expenditure to Rs 10,96 crore (Rs 15.36 crore).
Interestingly, in the falling interest rate scenario, the interest income of the bank has grown substantially while the cost of deposits has been subdued.
"The bank has been discouraging high-cost corporate deposits, offering interest of 6 per cent for 30 to 45 days and 7 per cent on 45 to 90 days, as against 8 to 9 per cent offered by the other private banks. With this, the cost of deposits of the bank has fallen," said Ravi Kumar executive director, ICICI Banking Corporation on the jump in profits.
The deposits jumped from Rs 1347.60 crore as on March 31, 1997 to crore to Rs 1701.19 crore as of September 30, 1997, and credit grew from Rs 798 crore to Rs 851 crore in the same period.
The credit growth has been during a time when the banking sector has been faced with a fall in bank credit. "There is equal growth in investment on commercial papers and non convertible debentures," said Ravi Kumar.
The annualised earning per share stood at Rs 3.46, annualised return on average net worth at 25.27 per cent, annualised return on average assets at 2.77 per cent and the book value per share is at Rs 15.91.
The gross income of the bank increased to Rs 163 crore from Rs 114.07 crore in the corresponding period, while gross expenditure rose to Rs 105.84 crore from Rs 77.37 crore.
The net worth of the bank has improved from Rs 181.88 crore as of March 1997 to Rs 262.44 crore during September 1997 as a consequence of the bank's public issue aggregating to Rs 144.37 crore.