Despite recording a 21% growth in its fourth quarter net profit, ICICI Bank shares ended about 3% down as the result failed to beat market expectations
ICICI Bank, India's largest private sector lender, on Friday reported a 21% growth in its fourth quarter net profit despite higher net non-performing loans (NNPLs) and marginal fall in other incomes.
For the quarter to end-March, the lender said its net profit on a standalone basis increase 21% to Rs2,304 crore from Rs1,902 crore while the same on a consolidated basis rose 38% to Rs2,249 crore over same period last year. During the March quarter, total revenues of the lender rose to Rs12,573.5 crore from Rs11,403 crore while its net interest income (NII) increased 22% to Rs3,803 crore from Rs3,105 crore in Q4-2012.
“ICICI Bank’s NII have been marginally higher than estimated while net revenues were below our estimates at Rs6,000 crore due to lower than expected other income. Slippages during the quarter could have been higher than trend given net non-performing loans (NNPLs) have risen quarter-on-quarter. While overall numbers have been in line with the management’s guidance, there has been no beat on numbers as most other private banks have beaten estimates,” said Siddharth Teli, managing director and co-head for institutional research at Religare Capital Markets.
ICICI Bank said during the full year, its net profit on standalone basis grew 29% to Rs8,325 crore from Rs6,465 crore a year ago. During FY13, the lender's net interest margin (NIM) increased 38 basis points to 3.11% from 2.73% for FY2012.
While the bank’s gross non-performing asset ratio declined to 2.68% from 3.04%, its net non-performing asset ratio increased marginally to 0.64% from 0.62% at March 2012.
During Q4-2013, ICICI Bank's savings account deposits increased by Rs4,188 crore and current account deposits increased by Rs1,252 crore. The bank’s current account savings account (CASA) ratio improved to 41.9% at March 2013 compared with 40.9% at December 2012.
During the full year, ICICI Bank said its total advances increased 14% Rs2.90 lakh crore from Rs2.53 lakh crore a year ago while the year-on-year growth in domestic advances was 18%.
The bank has declared a full year dividend of 200% or Rs20 per share.
ICICI Bank shares closed Friday 2.8% down at Rs1,144.3 on the BSE, while the benchmark Sensex ended marginally down at 19,286.
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