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ICICI Bank Q2 profit, NII climb 15.2%; asset quality hit

Net profit of the bank climbed 15.2 percent year-on-year to Rs 2,709 crore during the quarter supported by non interest income and stable net interest income.

The News International Team

India’s largest private sector lender  ICICI Bank met street expectations on profit and net interest income front but its asset quality and provisions hit in the quarter ended September 2014.

Net profit of the bank climbed 15.2 percent year-on-year to Rs 2,709 crore during the quarter supported by non interest income and stable net interest income.

Net interest income, the difference between interest earned and interest expended, grew by 15.2 percent to Rs 4,657 crore during the quarter compared to Rs 4,043 crore in the year-ago period while other income (non-interest income) shot up 26.4 percent on yearly basis to Rs 2,738.4 crore in September quarter.

Profit was expected at Rs 2,713 crore and net interest income at Rs 4,647 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Provisions and contingencies jumped 17 percent sequentially (up 36 percent on yearly basis) to Rs 849.5 crore in the quarter gone by, with the provision coverage ratio at 65.9 percent as on September 2014.
 
Asset quality of the bank weakened during the quarter with the gross NPA rising 4 basis points Y-o-Y (up 7 bps sequentially) to 3.12 percent and net NPA climbing 11 bps on yearly basis (up 9 bps quarter-on-quarter) to 0.96 percent.

In absolute term, gross NPA rose 6.5 percent Q-o-Q (up 15 percent Y-o-Y) to Rs 11,547 crore and net NPA surged 15 percent quarter-on-quarter (up 46 percent Y-o-Y) to Rs 3,942 crore in September quarter.

Capital adequacy ratio (as per Basel III norms) declined to 16.6 percent during the quarter compared to 17 percent in previous quarter but was improved compared to 16.5 percent in the year-ago period.

At 13:25 hours IST, the stock was quoting at Rs 1,590, down 0.87 percent on the BSE after hitting an all-time high of Rs 1,619.70.

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