India's ICICI Bank reports 15.9% rise in Q1 profit, beats estimates
- Indian banks have seen a pickup in loan growth since April, with demand for personal credit and loans against gold rising
MUMBAI: Indian private lender ICICI Bank reported a higher-than-expected profit for the first quarter on Saturday, driven by stronger loan demand and lower provisions for bad loans.
The country’s second-largest private lender by market capitalisation posted a stand-alone net profit of 148 billion Indian rupees ($1.54 billion) for the three months ended June, compared with 127.68 billion rupees a year earlier.
Analysts had expected a profit of 131.8 billion rupees, according to data compiled by LSEG.
Indian banks have seen a pickup in loan growth since April, with demand for personal credit and loans against gold rising. Small businesses have also stepped up borrowing, in part backed by government default guarantees made available amid disruptions caused by the Iran war.
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ICICI Bank’s net interest income rose 12.7% to 243.8 billion rupees, aided by a 19.6% rise in domestic loans. Deposits grew 14% during the quarter.
ICICI Bank’s net interest margin, a key measure of the bank’s profitability, was marginally higher at 4.36%.
Funds kept aside for potential bad loans and other losses fell 30.5% to 12.6 billion rupees.
The bank’s other income, which includes income from bonds and other investments, rose 16% to 84.25 billion rupees amid volatile currency and debt markets.
The Mumbai-based lender’s asset quality improved marginally, with the gross non-performing asset ratio at 1.38% at the end of June, compared with 1.4%in the prior three months.
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