Retail boom buoys ICICI profit 31% to Rs 580.05 cr in Q2

ICICI Bank's net profit in July-September 2005 rose 31.31 per cent to Rs 580.05 crore from Rs 442.08 crore a year earlier, driven by a whopping 73 per cent rise in its retail loans.

Total income jumped 54.40 per cent to Rs 4,324.86 crore in the second quarter of 2005-06 from Rs 3,065.92 crore a year ago ICICI Bank's retail loans portfolio swelled to Rs 68,537 crore as on September 30, 2005 from Rs 39,609 crore a year earlier, making it the bank with the largest retail assets among banks and finance companies in India.

The bank witnessed a rapid growth of 56.35 per cent in its total total advances to Rs 1,07,070.97 crore in July-September 2005 from Rs 68,479.15 crore a year earlier.

Its loans growth was backed by a 68.23 per cent increase in deposits at Rs 1,20,452.34 crore. The bank reported a 42.50 per cent year-on-year increase in its total assets at Rs 1,89,218.48 crore against Rs 1,32,780.69 crore.

The high retail loans growth being witnessed by the bank helped it report a 39 per cent jump in its net interest income to Rs 953 crore from Rs 685 crore in the second quarter of 2004-05, despite a drop in its net interest margin.

The net interest margin was down to 2.4 per cent as its cost of funds increased by 10 basis points during the second quarter on the back of a 50 basis points increase in the yields on government securities.

ICICI Bank's total expenditure surged by 41.77 per cent to Rs 3,280.80 crore in July-September 2005 from Rs 2,314.15 crore in July-September 2004.

The bank's net non-performing assets (NPAs) stood at 0.97 per cent as on September 30, 2005. The net NPAs in retail loans were at a low of 0.57 per cent.

Profit before tax for the bank's consumer and commercial banking segment rose to Rs 696.32 crore from Rs 394.10 crore a year earlier. Its investment banking division, however, reported a drop in profit before tax to Rs 53.55 crore in the second quarter from Rs 172.57 crore a year earlier.