ICICI Bank, India's largest private lender, reported a 30 per cent year-on-year jump in net profit for the fiscal third quarter on Thursday, beating estimates. Net profit for the three months to December 2012 rose to Rs 2,250 crore against Rs 1,728 crore in the corresponding quarter a year ago, ICICI Bank said.
A jump in other income and lower provisioning on bad loans led to profit beat, analysts said. Net interest margin, a key gauge of profitability for banks, improved by 37 basis points to 3.07 per cent in the December quarter compared with a year earlier.
Net interest income, the difference between interests earned and paid out, jumped 29 per cent to Rs 3,498 crore against Rs 2,712 crore year-on-year. Other income jumped 17 per cent year-on-year to Rs 2,214 crore.
Brokers polled by NDTV estimated net profit at Rs 2,094 crore and NII at Rs 3,517 crore.
"The beat on profit after tax has come from the operational side of the business and we maintain our outperform call on the stock," Rajiv Mehta, AVP Research at IIFL told NDTV Profit.
Asset quality improves sequentially:
ICICI Bank reported fresh restructuring of Rs 11 crore, much lower than what the Street estimated. Net non-performing assets declined to 0.76 per cent of advances in the December quarter against 0.78 per cent of advances for the September quarter. Gross NPAs declined 3.31 per cent against 3.54 per cent quarter-on-quarter.
ICICI Bank set aside Rs 368 crore towards bad debts, down 27 per cent from Rs 507 crore in the September quarter.
ICICI Bank said advances were up 16 per cent while current account savings account (CASA) ratio as compared to total deposits was flat at 40.9 per cent against 40.7 per cent sequentially.
Shares fall after earnings announcement:
ICICI Bank shares declined almost 2 per cent on the Bombay Stock Exchange to close at Rs 1,191 a share. The stock traded with nearly 1.5 per cent gains ahead of earnings announcement.
Analysts attributed the negative reaction in ICICI Bank shares to profit taking. The stock has been gaining for the last four sessions. Also, the Street had largely factored in a strong result from ICICI Bank, analysts said.
A jump in other income and lower provisioning on bad loans led to profit beat, analysts said. Net interest margin, a key gauge of profitability for banks, improved by 37 basis points to 3.07 per cent in the December quarter compared with a year earlier.
Net interest income, the difference between interests earned and paid out, jumped 29 per cent to Rs 3,498 crore against Rs 2,712 crore year-on-year. Other income jumped 17 per cent year-on-year to Rs 2,214 crore.
Brokers polled by NDTV estimated net profit at Rs 2,094 crore and NII at Rs 3,517 crore.
"The beat on profit after tax has come from the operational side of the business and we maintain our outperform call on the stock," Rajiv Mehta, AVP Research at IIFL told NDTV Profit.
Asset quality improves sequentially:
ICICI Bank reported fresh restructuring of Rs 11 crore, much lower than what the Street estimated. Net non-performing assets declined to 0.76 per cent of advances in the December quarter against 0.78 per cent of advances for the September quarter. Gross NPAs declined 3.31 per cent against 3.54 per cent quarter-on-quarter.
ICICI Bank set aside Rs 368 crore towards bad debts, down 27 per cent from Rs 507 crore in the September quarter.
ICICI Bank said advances were up 16 per cent while current account savings account (CASA) ratio as compared to total deposits was flat at 40.9 per cent against 40.7 per cent sequentially.
Shares fall after earnings announcement:
ICICI Bank shares declined almost 2 per cent on the Bombay Stock Exchange to close at Rs 1,191 a share. The stock traded with nearly 1.5 per cent gains ahead of earnings announcement.
Analysts attributed the negative reaction in ICICI Bank shares to profit taking. The stock has been gaining for the last four sessions. Also, the Street had largely factored in a strong result from ICICI Bank, analysts said.
