India's ICICI Bank Q2 profit rises 20.1%, beats estimates

By Reuters News

By Ashwin Manikandan

MUMBAI, Oct 17 (Reuters) - Indian private lender ICICI Bank ICBK.NS reported a higher-than-expected profit for its second quarter on Saturday, driven by stronger loan demand and lower provisions for bad loans.

The country's second-largest private lender by market capitalisation posted a standalone net profit of 148.43 billion Indian rupees ($1.56 billion) for the three months ended September, compared with 123.59 billion rupees a year earlier.

Analysts had expected a profit of 142.51 billion rupees, according to data compiled by LSEG.

Indian lenders have seen strong loan growth during the quarter across both corporate and retail segments.

ICICI Bank's net interest income rose 17.7% to 253.39 billion rupees, aided by a 30% increase in total loans. Deposits grew 27.1% from a year earlier.

Its net interest margin, a key measure of profitability, narrowed to 4.18% from 4.36% in the previous quarter.

Funds kept aside for potential bad loans and other losses fell 6.9% to 8.51 billion rupees.

The bank's other income, which includes income from bonds and other investments, rose 6.2% to 80.47 billion rupees amid volatile currency and debt markets.

The lender's asset quality improved, with the gross non-performing asset ratio at 1.20% at the end of September, compared with 1.38% in the prior three months.

($1 = 94.9600 Indian rupees)

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