Analysis : ICICI Bank's net doubles in Q3
Wednesday, 19 January, 2000
ICICI bank has reported excellent results for the quarter ended Dec 99. Net profit of the bank doubled to Rs 28.26 cr from Rs 14.04 cr. For the nine-month period ended 31 Dec.' 99 the net profit at Rs 72.36 cr was 64% higher.
The profits for Q199 at Rs 20.25cr , Q2 '99 at Rs 23.85cr and Q3 '99 at Rs 28.26 cr have shown consistent growth of 17% and 22% indicating the growth is evenly spread, even on a continuos quarter-to-quarter basis.
The bank has succeeded in maintaining its operating profit margins at 88.95% for the quarter ended Dec. '99 even on higher interest income, which speaks about the ability of the management to maintain growth without sacrificing margins, the OPM for the nine-month period ending Dec 99and Year ending march 99were at 89.74% and 89.67%respectively . Robust growth in other income at 88% helped maintain margins for the quarter ending Dec. '99, expenditure for the quarter rose 67%.
Depreciation charges for the quarter were up 18% at Rs 5.29cr ,for the nine-month period ending Dec.'99 Dec at Rs 14.34 was up at 13% as compared to their preceding previous year periods ,Interest income for the quarter was up by 43%to Rs 205cr from Rs 143 cr , interest expenditure kept pace with interest income which also rose 43%to Rs 165cr from Rs 115Cr.
Provisions and contingencies at 50% of the profits before taxes were lower by 12 basis points as compared to the preceding quarter of the previous year, the ratio of provision and contingencies to the profit before taxes for the period ended 31st Dec99 were at 44% as compared to 51% for the previous period . Significant reduction have taken place in the net non performing assets down from 1.8%as at 31 Mar.'99 to 1.00% during the nine month period ended 31 Dec.' 99 the reduction comes about when the advances of the bank has increased 51% from Rs 2680 cr to Rs 4056 cr, thus continuing as the largest in the new private sector banks.
ICICI Bank, having pioneered the internet banking concept, has now to its credit 24,000 Internet accounts registering a growth of 600%.it has also launched a quick remittance product called "Money India". A memorandum of understanding between Satyam Infoway for distribution of retails products of the bank online was signed . E-broking venture of the ICICI group which aims to integrate customers demat account ,savings account and banks account should contribute to the growth momentum.
The results were much better than market expectations, The scrip which has been in the news for its reported talks with Centurion Bank has seen a lot of action a the bourses attracting significant volumes in the range of 5-7 lac ,after the results were announced the scrip closed the day at Rs 91.25, hitting the upper circuit limit on its way up . At Rs 92 with a EPS of Rs 6.85, it enjoys a discounting of around 13, its strategy of clicks and mortar strategy should pay off, contributing significantly to the bottom line.
-Capital Market |
