ICICI Bank Reports Highest Growth Rate in Seven Years

Strategic Insights -

ICICI Bank, the country's largest private bank, reported a net profit of Rs 1,452 crore for the quarter ended March 2011, an increase of 44% over the year-ago period. This is the lender's highest growth rate in the last seven years. The bank's annual profits rose 28% to Rs 5,151 crore, with a proposed higher dividend of Rs 14 per share.

Key Takeaways:

  • ICICI Bank reported a net profit of Rs 1,452 crore for the quarter ended March 2011, a 44% increase over the year-ago period.
  • The bank's annual profits rose 28% to Rs 5,151 crore, with a proposed higher dividend of Rs 14 per share.
  • The bank began to grow its retail loan book in the fourth quarter, marking the first sign of growth in three years.
  • ICICI Bank's net interest margin stood at 2.7%, with a focus on maintaining that as margins come under pressure for Indian banks.
  • The bank's consolidated profits rose 30% to Rs 6,093 crore in FY2011 from Rs 4,670 crore in FY2010.

Chanda Kochhar, MD, ICICI Bank, stated that the bank had a net interest margin of 2.7% and would focus on maintaining that as margins were coming under pressure for Indian banks.

  • ICICI Prudential Life Insurance substantially improved its profits for the year at Rs 808 crore against Rs 258 crore a year ago.
  • ICICI Lombard General Insurance took a hit of Rs 272 crore following additional provisions for motor third-party losses as required by the regulator.
  • The bank's loan growth continues to grow slower than industry at 19% with total loans growing to Rs 216,366 crore from Rs181,206 crore.
  • The bank's savings deposits increased by 26% year-on-year to Rs 66,869 crore on March 31, 2011 from Rs 53,218 crore on March 31, 2010.
  • The CASA ratio increased to 45.1% on March 31, 2011 from 41.7% on March 31, 2010.

Statistics:

  • Net profit: Rs 1,452 crore
  • Annual profits: Rs 5,151 crore
  • Proposed higher dividend: Rs 14 per share
  • Consolidated profits: Rs 6,093 crore
  • ICICI Prudential Life Insurance profits: Rs 808 crore
  • ICICI Lombard General Insurance losses: Rs 272 crore
  • Total loans: Rs 216,366 crore
  • Savings deposits: Rs 66,869 crore
  • CASA ratio: 45.1%

Sources:

  • "ICICI Bank Reports Highest Growth Rate in Seven Years" - TIMES NEWS NETWORK
  • "ICICI Bank Q4 net profit rises 44% to Rs 1,452 crore" - Economic Times
  • "ICICI Bank to propose higher dividend of Rs 14 per share" - Business Standard
  • "ICICI Bank Q4 Results" - ICICI Bank website