ICICI Bank continues strong growth momentum in Q3: Change is working!

ICICI Bank continues strong growth momentum in Q3

Change is working!

ICICI Bank has reported strong jump in its consolidated net profit
during the third quarter of financial year 2010-11. The largest
private sector bank in the country notched up consolidated PAT
growth of 77.5% Y-o-Y to Rs. 2,039 crore (US$ 456 million) in
Q3FY11 from Rs. 1,149 crore (US$ 257 million) in the
corresponding quarter of the previous financial year i.e., Q3FY10.

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ICICI Bank continues strong growth momentum in Q3: Change is working!

ICICI Bank is India's second-largest bank, after the state-owned

SBI, with total assets of Rs. 3,634.00 billion (US$ 81 billion) at
March 31, 2010.

The Mumbai-headquartered bank’s standalone net profit was up

30.50% at Rs 1,437 crore versus Rs 1,101.1 crore, during the said
period.

The bank’s standalone net interest income grew 12.34% y-o-y to Rs.
2,312 crore in Q3FY11 from Rs. 2,058 crore in Q3FY10.

In another positive, its Current and Savings Account (CASA) ratio

increased to 44.2% at December 31, 2010 from 39.6% at
December 31, 2009.
Advances too grew by 15.3% Y-o-Y to Rs. 206,692 crore (US$ 46.2
billion) at December 31, 2010 from Rs. 179,269 crore (US$ 40.1
billion) at December 31, 2009.

However, the bank’s Operating expenses (including direct

marketing agency expenses) increased 27.2% to Rs. 1,707 crore
(US$ 382 million) in Q3FY11 from Rs. 1,342 crore (US$ 300 million)
in Q3FY10, primarily due to costs relating to new branches added
over the last year and full impact of cost of erstwhile Bank of
Rajasthan, during the quarter.

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ICICI Bank continues strong growth momentum in Q3: Change is working!

Provisions decreased 53.6% to Rs. 465 crore (US$ 104 million) in

Q3-2011 from Rs. 1,002 crore (US$ 224 million) in Q3-2010.

The bank’s Net Non-Performing Asset (NPA) ratio also declined to

1.16% at December 31, 2010 from 2.19% at December 31, 2009.

In absolute terms, the bank’s Net NPA decreased by 34.9% to Rs.

2,873 crore (US$ 643 million) at December 31, 2010 from Rs. 4,416
crore (US$ 988 million) at December 31, 2009.

Its Provision coverage ratio increased to 71.8% at December 31,

2010 from 69.0% at September 30, 2010 (51.2% at December 31,
2009).

The bank’s CAR (capital adequacy ratio) stood at a solid 19.98%,

with Tier-1 capital adequacy of 13.72%, as per Basel II norms. This
is well above RBI’s requirement of total capital adequacy of 9.0%
and Tier-1 capital adequacy of 6.0%.

Performance in the 9-Month period of FY 2010-11

The bank’s standalone Profit after tax for the 9-month period of FY
2010-11 grew by 22.5% to Rs. 3,699 crore (US$ 827 million)
compared to Rs. 3,019 crore (US$ 675 million) during the same
period of the previous fiscal year;

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ICICI Bank continues strong growth momentum in Q3: Change is working!

Consolidated PAT for the 9-month period increased by 36.0% to R

4,525 crore (US$ 1.0 billion) for 9M-2011 compared to Rs. 3,328
crore (US$ 744 million) for 9M-2010.

Change@work

According to a statement by the country’s largest private sector

lender, it has continued with its strategy of pursuing profitable
credit growth by leveraging on its improved fund mix, lower credit
costs and efficiency improvement, and cost rationalization. In
this direction, the Bank continues to leverage its expanded branch
network to enhance its deposit franchise and create an integrated
distribution network for both asset and liability products.
ICICI Bank has 2,512 branches, the largest branch network
among private sector banks in the country, as on December 31,
2010.

(To read another of our story on ICICI Bank, click here)

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ICICI Bank continues strong growth momentum in Q3: Change is working!

For refreshing business insights: log on to www.businessviewsreviews.blogspot.com