ICICI Bank’s Profit Tops Estimates Helped by Growth in Loans

The second- largest private sector lender in India posted a 37% jump in quarterly profit.

Net income for the third quarter was $914 million, compared with 55.11 billion rupee a year ago. The average estimate was 71.7 billion rupee.

Banks in the world's second most populous country are looking for deposits to back up growing demand for credit. Retail lending is expected to grow as Indians celebrate the festival of lights.

Many banks have already marked down the value of bonds in their treasury portfolios as rising rates make it more difficult for borrowers to refinance at attractive rates. The company made a loss on treasury operations.

The profit of the bank was in line with the estimate.

The bank's asset quality has improved. At the end of September, the gross-bad loan ratio was 3.19%. The company set aside more money in provisions in the second quarter than it did in the same period last year.

Other Key Metrics 

• Net interest margin was at 4.31% in September quarter compared to 4% in the previous quarter
• Interest income was at 260.3 billion rupees, up 23% year-on-year and above estimates of 245.05 billion rupees
• Other income was at 50.5 billion rupees, up 5.2% from a year earlier
• Total deposits were at 10.9 trillion rupees, up 12% year-on-year
• Return on assets was at 2.06%

Debjit Chakraborty helped with the project.