NEWS & ADVICE : CAR LOANS
ICICI: Operating profit, Net profit increase
By Vaibhav Aggarwal
Oct 31, 2008
Print    Email    RSS   

Even though the market rumours have tried to put a negative impact on ICICI's financial stability, yet the bank has clocked a 42% increase in its operating profit and 1.1% rise in net profit for the second quarter ending September 30th.

ICICI's operating profit rose to Rs 2,437 crore from Rs 1,712 crore in the corresponding period a year ago. This figure comes in spite of bank's exposure of $80 million to the senior bonds of Lehman Brothers who filed for bankruptcy in the last month.

The bank recorded a growth of 1.1% in net profit at Rs 1,014 crore during this quarter against Rs 1,003 crore last year. The net profit of the bank rose marginally due to its lower non-interest income and slow credit growth. Ms Chanda Kochhar, Joint Managing Director of ICICI Bank, said: "The net profit depends on the impact of treasury income. Last year we had about Rs 400-crore profit from sale of shares. But this year we have not sold anything." However its consolidated net profit dropped by 27.4% to Rs 651.48 crore in this quarter.

The advances of the bank saw a growth of 7%. "We are consciously following the strategy of moderate growth in credit. In the current scenario it is better to tighten the credit parameters in both retail and corporate credit," said Ms Kochhar.

Following this situation ICICI has stopped lending for small personal loans and even slowed down in its credit card business. Total deposits of the bank have also declined by 2% following the focus on low-cost CASA (current account savings account). But the share of CASA to total deposits has increased to 30% from 25% last year. Higher CASA have helped the bank to increase its net interest margin (NIM) from 2.2% to 2.4%.

The bank's total income rose to Rs 9,712.13 crore from Rs 9,588.41 crore in the same period last year. The consolidated income grew to Rs 15,590.46 crore from Rs 13,850.57 crore in the quarter under review.

Capital adequacy ratio of the bank decreased to 14.01% in this quarter against 16.76% in the same quarter last year.

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Credit profile and its effect on loan...
Carnival of Indian Personal Finance Blogs #3
Managing loans through difficult times
TIPS FOR ASPIRING CAR BUYERS AND OWNERS
Carnival of Indian Personal Finance Blogs #4


Hello I am looking to renew my car insurance and I...
my loan no
Lonavala Caℓℓ Girℓs 9765946980 / 9970712349...

NEWS THIS WEEK
SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive