ICICI Bank Q3 net up 14% at Rs 3,265 cr; shares slump 6%

Asset quality worsens as bad loans rise

ICICI Bank-country’s largest private sector lender, reported a consolidated net profit of Rs 3,265.32 crore for the quarter ended December 31, higher by 14% as compared to the same quarter last year.

Net interest income, the difference between interest income and interest expenditure, grew by 13% to Rs 4,812 crore, compared with Rs 4,255 crore in the third quarter of the past financial year.

Net Interest Margin, a key indicator of bank’s profitability, in the quarter was at 3.46%, against 3.32% in the third quarter last year.

Asset quality worsened in the third quarter. Gross non-performing assets, as a percentage of total loans, was 3.4% in the December quarter, against 3.05% in the same period a year ago.  Net NPA ratio increased to 1.27% as compared to 0.94% in the corresponding quarter last year. Provisions also increased to Rs 980 crore  as compared to Rs 695 crore in the December quarter last financial year.

The bank’s capital adequacy ratio was at 17.57% and Tier-1 capital adequacy ratio was 12.96% at December 31, 2014.

The lender's stocks on BSE were trading 6% lower at Rs 357 apiece on BSE at 1430 hours.