ICICI Bank's Q1 profit grows by 17%

ICICI Bank, India's Number 2 lender, posted a 17 per cent rise in quarterly net profit, meeting forecasts, on strong corporate and retailloan demand in a rapidly growing economy.

Banks including bigger rival State Bank of India are seeing an improvement in asset quality as consumer loan defaults slow in an economy forecast to grow about 8.5 per cent in the current year ending next March.

Advances were down 6.92% (YoY) while increased 1.75% (QoQ). Deposits slipped 4.43% (YoY) and were down 0.5% (QoQ).

ICICI said its net profit in April-June, its fiscal first quarter, rose to Rs 10.26 billion ($221 million) from Rs 8.78 billion a year earlier. A Reuters poll of analysts had forecast net profit of Rs 10.30 billion.

Bank credit in India grew an annual 21.7 per cent in early July, according to central bank data, amid a rise in business and consumer confidence, from a low of 9.7 per cent last October and compared with 16.7 per cent at end-March.

Shares in ICICI Bank, valued at nearly $22 billion, have risen 3 per cent this year, roughly in line with a 2 per cent gain in the main Mumbai market but underperforming a 15 per cent jump in the sector index.

The bank expects credit demand to grow by 15 per cent in the year to March 2011, Chief Executive Chanda Kochhar said on Saturday.

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Free Indian Stock Tips Team