Mumbai, July 26: ICICI Bank, the country’s largest private bank, today reported a 6 per cent fall in net profit for the first quarter ended June 30 at Rs 728 crore as rising interest rates gouged the valuations of its trading and government securities portfolio.
The bank had earned a net profit of Rs 775 crore in the first quarter of the previous fiscal. The bank said the sharp increase in interest rates and adverse market conditions during the quarter had a negative impact of Rs 594 crore on its trading and statutory liquidity ratio securities portfolio and its treasury income.
Analysts had estimated the bank’s net profits in the region of Rs 750-800 crore. In its core operations of borrowing and lending, ICICI Bank performed well with a net interest income of Rs 2,090 crore, a 41 per cent growth over the corresponding figure of Rs 1,479 crore in the previous year.
The bank added that its fee income increased 37 per cent to Rs 1,958 crore in the first quarter from Rs 1,428 crore.
The quarter also saw the bank’s non-performing assets (NPAs) swelling to Rs 8,511.36 crore from Rs 5,292.04 crore in the year-ago period. Net NPAs leapt 50 per cent to Rs 4,033.57 crore from Rs 2,674.19 crore in the year-ago period.
Consolidated advances of the bank and its overseas banking subsidiaries and ICICI Home Finance Company rose 20 per cent to Rs 257,287 crore at June 30 from Rs 215,293 crore.
On the liabilities front, ICICI Bank said savings account deposits increased 35 per cent to Rs. 43,465 crore at June 30, 2008, from Rs 32,121 crore at June 30, 2007.
Low-cost current and savings account deposits constituted 27.6 per cent of total deposits at June 30 compared with 22.4 per cent in the same period last year.
Source: http://www.telegraphindia.com
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