The largest private sector bank in India, ICICI Bank, has declared its financials for the quarter ending September. It has recorded a 30 percent increase in net profits of Rs. 1956 crore as against its net profits in the same quarter last year.
The increase in its net profits is attributed to factors such as higher interest income, consistency in net interest margin (NIM), income from subsidiaries in the form of dividends and improved cost management techniques. Before the release of its quarter 2 financials, analysts and industry experts speculated about 22 percent growth in its net profits.
Net interest income, which can be defined as the difference between the interest earnings and the expenses, recorded a growth of 35 percent, standing at Rs. 3371 crore. The NIM remained constant at 3 percent, increasing by 39 basis points from the last year.
On the matter, the Managing Director and Chief Executive of ICICI Bank, Ms. Chanda Kochhar said, "We will look to improve our margin slightly in the coming quarters. The target is to keep the margin at least at three per cent."
The bank's total profits stand at Rs. 2390 crore for the second quarter, increasing by about 20 percent from last fiscal. The growth in profits of its life insurance business, general insurance business and asset management businesses are speculated to be the reason of its high profitability in the second quarter of this year.