ICICI Bank Q1 net up 17 per cent on income growth of 50 per cent

24 July 2006

For the quarter ended 30 June, 2006, net profits increased 16.98 per cent to Rs620.01 crore from Rs530.01 crore for the previous year quarter. Total income increased by a very impressive 50.15 per cent to Rs6,316.19 crore from Rs4,206.49 crore for the prior year quarter.

Interest income went up by a substantial 61.7 per cent for the quarter while other income, including fee and treasury income, rose by a more modest 17.16 per cent. Fee income increased 49.7 per cent over the previous year quarter to Rs985 crore.

Interest expenses rose at a faster 66 per cent over the previous year quarter, resulting in a modest drop in net interest margins. Operating profits for the quarter were higher by 26.84 per cent over the previous year quarter.

The modest growth in operating profits was mostly on account of lower treasury profits for the quarter. Operating profits from core operations, excluding treasury income, grew at an impressive 45.18 per cent over the previous year quarter.

Staff costs were higher by 59.92 per cent over the previous year quarter and marketing expenses increased 53.78 per cent. Other operating expenses increased 26.47 per cent.

Growth in bottom line was considerably affected by a sharp 62.07 per cent surge in provisions for doubtful assets and standard provisions during the quarter. Tax provisions declined modestly by 10.02 per cent.