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TMCNet:  ICICI Bank Limited Posts Performance Review [Manufacturing Close - Up]

[April 30, 2014]

ICICI Bank Limited Posts Performance Review [Manufacturing Close - Up]

(Manufacturing Close - Up Via Acquire Media NewsEdge) The Board of Directors of ICICI Bank Limited at its meeting held at Mumbai on April 25, approved the audited accounts of the Bank for the year ended March 31.

In a release on April 25, the Company noted: Profit & loss account -Standalone profit after tax increased 18 percent to Rs 9,810 crore (US$ 1.6 billion) for the year ended March 31, (FY2014) from Rs 8,325 crore (US$ 1.4 billion) for the year ended March 31, 2013 (FY2013).


-Net interest income increased 19 percent to Rs 16,475 crore (US$ 2.8 billion) in FY2014 from Rs 13,866 crore (US$ 2.3 billion) in FY2013. Net interest margin increased by 22 basis points from 3.11 percent in FY2013 to 3.33 percent in FY2014.

-Non-interest income increased by 25 percent to Rs 10,428 crore (US$ 1.7 billion) in FY2014 from Rs 8,346 crore (US$ 1.4 billion) in FY2013.

-Cost-to-income ratio reduced to 38.2 percent in FY2014 from 40.5 percent in FY2013.

-Provisions were at Rs 2,626 crore (US$ 438 million) in FY2014 compared to Rs 1,803 crore (US$ 301 million) in FY2013.

-Return on average assets was 1.76 percent in FY2014 compared to 1.66 percent in FY2013.

-Standalone profit after tax increased by 15 percent to Rs 2,652 crore (US$ 443 million) for the quarter ended March 31, (Q4-2014) from Rs 2,304 crore (US$ 385 million) for the quarter ended March 31, 2013 (Q4-2013).

-Net interest income increased 15 percent to Rs 4,357 crore (US$ 727 million) in Q4-2014 from Rs 3,803 crore (US$ 635 million) in Q4- 2013.

-Non-interest income increased by 35 percent to Rs 2,976 crore (US$ 497 million) in Q4-2014 from Rs 2,208 crore (US$ 369 million) in Q4-2013. Non-interest income in Q4-2014 included Rs 222 crore (US$ 37 million) of exchange rate gains on repatriation of retained earnings from overseas branches.

-Cost-to-income ratio reduced to 39.2 percent in Q4-2014 from 40.0 percent in Q4- 2013.

-Provisions were at Rs 714 crore (US$ 119 million) in Q4-2014 compared to Rs 460 crore (US$ 77 million) in Q4-2013.

-Consolidated profit after tax increased by 15 percent to Rs 11,041 crore (US$ 1.8 billion) in FY2014 compared to Rs 9,604 crore (US$ 1.6 billion) in FY2013. Consolidated profit after tax increased by 9 percent to Rs 2,724 crore (US$ 455 million) for Q4-2014 from Rs 2,492 crore (US$ 416 million) for Q4-2013.

Operating review The Bank has continued with its strategy of pursuing profitable growth. The Bank continued to grow its retail franchise and has seen healthy growth in retail assets and deposits during the year. The Bank continued to strengthen its deposit franchise with healthy mobilization of current and savings account (CASA) deposits during the year, leveraging its increased branch network and technology initiatives. During the year, the Bank added 653 branches and 834 ATMs to its network. At March 31, the Bank had 3,753 branches, the largest branch network among private sector banks in the country. The Bank's ATM network increased to 11,315 ATMs at March 31, as compared to 10,481 at March 31, 2013.

Credit growth Total advances increased by 17 percent year-on-year to Rs 338,703 crore (US$ 56.5 billion) at March 31, from Rs 290,249 crore (US$ 48.4 billion) at March 31, 2013. The Bank has continued to see healthy growth in its retail disbursements resulting in a year-on- year growth of 23 percent in the total retail portfolio at March 31.

Deposit growth During Q4-2014, savings account deposits increased by Rs 3,408 crore (US$ 569 million) and current account deposits increased by Rs 1,804 crore (US$ 301 million). For FY2014, savings account deposits increased by Rs 13,482 crore (US$ 2.3 billion) and current account deposits increased by Rs 6,319 crore (US$ 1.1 billion). At March 31, savings account deposits were Rs 99,133 crore (US$ 16.5 billion) and current account deposits were Rs 43,245 crore (US$ 7.2 billion). The Bank's CASA ratio was 42.9 percent at March 31, as compared to 43.3 percent as December 31, 2013 and 41.9 percent at March 31, 2013. The average CASA ratio for Q4-2014 was 39.1 percent and for FY2014 was 39.4 percent compared to 38.0 percent for FY2013. Total deposits increased by 13 percent year-on-year to Rs 331,914 crore (US$ 55.4 billion) at March 31.

Capital adequacy The Bank's capital adequacy at March 31, as per Reserve Bank of India's guidelines on Basel III norms was 17.70 percent and Tier-1 capital adequacy was 12.78 percent, well above regulatory requirements.

Asset quality Net non-performing assets at March 31, were Rs 3,301 crore (US$ 551 million) compared to Rs 3,121 crore (US$ 521 million) at December 31, 2013 and Rs 2,234 crore (US$ 373 million) at March 31, 2013. The net non-performing asset ratio was 0.82 percent at March 31, compared to 0.81 percent at December 31, 2013 and 0.64 percent at March 31, 2013. The Bank's provision coverage ratio, computed in accordance with the RBI guidelines, was 68.6 percent at March 31, after write-offs of Rs 2,156 crore (US$ 360 million) during the year. Net loans to companies whose facilities have been restructured were Rs 10,558 crore (US$ 1.8 billion) at March 31, compared to Rs 8,602 crore (US$ 1.4 billion) at December 31, 2013 and Rs 5,315 crore (US$ 887 million) at March 31, 2013.

Dividend on equity shares The Board has recommended a dividend of Rs 23.00 per equity share (equivalent to US$ 0.77 per ADS) for FY2014. The declaration and payment of dividend is subject to requisite approvals. The record/ book closure dates will be announced in due course.

Consolidated results Consolidated profit after tax increased 15 percent to Rs 11,041 crore (US$ 1.8 billion) for FY2014 from Rs 9,604 crore (US$ 1.6 billion) for FY2013. Consolidated profit after tax increased 9 percent to Rs 2,724 crore (US$ 455 million) for Q4-2014 from Rs 2,492 crore (US$ 416 million) for Q4-2013. The consolidated return on equity improved from 14.7 percent in FY2013 to 14.9 percent in FY2014.

Insurance subsidiaries ICICI Prudential Life Insurance Company (ICICI Life) was the largest private sector life insurer based on new business retail weighted received premium during April-December 2013. ICICI Life's profit after tax for FY2014 was Rs 1,567 crore (US$ 262 million) compared to Rs 1,496 crore (US$ 250 million) for FY2013. ICICI Life's annualised premium equivalent (APE) was at Rs 3,444 crore (US$ 575 million) in FY2014 compared to Rs 3,532 crore (US$ 590 million) in FY2013. During FY2014, ICICI Life has seen an increase in its assets under management to Rs 80,597 crore (US$ 13.5 billion). During Q4-2014, renewal premium for ICICI Life grew by 11 percent.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector during April- February 2014. The gross premium income of ICICI General increased by 11 percent to Rs 7,134 crore (US$ 1.2 billion) in FY2014 from Rs 6,420 crore (US$ 1.1 billion) in FY2013. ICICI General's profit after tax for FY2014 was Rs 511 crore (US$ 85 million) compared to Rs 306 crore (US$ 51 million) for FY2013.

More Information: www.icicibank.com ((Comments on this story may be sent to newsdesk@closeupmedia.com)) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved.

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