ICICI Bank Performance Review – Quarter ended September 30, 2010
Mumbai, October 29, 2010:
The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting
held at Mumbai today, approved the audited accounts of the Bank for the
quarter ended September 30, 2010.
During the quarter, the Bank received approval of Reserve Bank of India
(RBI) for merger of Bank of Rajasthan. The merger was effective from the
close of business of August 12, 2010. The financials for Q2-2011 include
the financials for erstwhile Bank of Rajasthan (e-BoR) for the period
August 13, 2010 to September 30, 2010 (49 days). At the merger date, e-
BoR had total assets of Rs 15,596 crore (US$ 3.5 billion), advances of Rs
6,528 crore (US$ 1.5 billion) and deposits of Rs 13,483 crore (US$ 3.0
billion) including CASA deposits of Rs 4,680 crore (US$ 1.0 billion).
Profit & loss account
• Profit after tax increased 18.8% to Rs 1,236 crore (US$ 275 million) for
Q2-2011 from Rs 1,040 crore (US$ 231 million) for Q2-2010.
• Net interest income increased 8.3% to Rs 2,204 crore (US$ 490 million)
in Q2-2011 from Rs 2,036 crore (US$ 453 million) in Q2-2010.
• Fee income increased 14.6% to Rs 1,590 crore (US$ 354 million) in Q2-
2011 from Rs 1,387 crore (US$ 309 million) in Q2-2010.
• Operating expenses (including direct marketing agency expenses)
increased 11.3% to Rs 1,535 crore (US$ 342 million) in Q2-2011 from Rs
1,379 crore (US$ 307 million) in Q2-2010, primarily due to the impact
of new branches opened and increase in the number of employees.
• Provisions decreased 40.2% to Rs 641 crore (US$ 143 million) in Q2-
2011 from Rs 1,071 crore (US$ 238 million) in Q2-2010.
Balance sheet
The Bank continues to leverage its branch network to enhance its deposit
franchise and create an integrated distribution network for both asset and
liability products. At September 30, 2010, the Bank had 2,501 branches,
the largest branch network among private sector banks in the country.
CASA deposits increased by 34.5% to Rs 98,105 crore (US$ 21.8 billion) at
September 30, 2010 from Rs 72,930 crore (US$ 16.2 billion) at September
30, 2009 and the CASA ratio increased to 44.0% at September 30, 2010
from 36.9% at September 30, 2009. Total deposits of the Bank increased
by 11.0% to Rs 223,094 crore (US$ 49.6 billion) at September 30, 2010
from Rs 200,913 crore (US$ 44.7 billion) at June 30, 2010
Advances increased by 5.3% to Rs 194,201 crore (US$ 43.2 billion) at
September 30, 2010 from Rs 184,378 crore (US$ 41.0 billion) at June 30,
2010.
Capital adequacy
The Bank’s capital adequacy at September 30, 2010 as per Reserve Bank
of India’s guidelines on Basel II norms was 20.2% and Tier-1 capital
adequacy was 13.8%, well above RBI’s requirement of total capital
adequacy of 9.0% and Tier-1 capital adequacy of 6.0%.
Asset quality
Net non-performing assets decreased by 30.0% to Rs 3,192 crore (US$ 710
million) at September 30, 2010 from Rs 4,558 crore (US$ 1,014 million) at
September 30, 2009. The Bank’s net non-performing asset ratio
decreased to 1.37% at September 30, 2010 from 2.19% at September 30,
2009. The Bank’s provisioning coverage ratio computed in accordance
with the RBI guidelines at September 30, 2010 was 69.0% compared to
51.7% at September 30, 2009.
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(This is a press release from ICICI Bank)
