ICICI Q3 net profit dips 13% to Rs 1101cr
Times of India, January 21, 2010, Page 25
MUMBAI: ICICI Bank, the country's largest private sector bank, reported a 13.4% drop in net profit for the quarter ended December 2009 to Rs 1,101 crore from Rs 1,272 crore it earned during the corresponding quarter in the previous year. The bank's total income too dropped about 25% to Rs 7,762 crore during Q3FY10 from Rs 10,350 crore a year earlier.
The drop in net profit as well as in total income were largely attributed to fall in treasury income for the bank as yields in the debt market rose. For most companies in the financial services business, the lower rate of interest in the economy led to lower interest income.
ICICI Bank's loan and deposit books contracted during 2009 but top officials said credit demand was expected to pick up as the economy revives. It also said quality of its loans were improving because of conservative lending policies and revival in economic activities had slowed the rise in loan defaults.
‘‘The home loan registrations are going up month-on-month and car sales are going up month-on-month,'' Chanda Kochhar, CEO & MD, ICICI Bank, said during a conference call on Thursday. ‘‘Both these activities are seeing huge increase. So obviously, even the loans against homes or cars will see a good increase,'' Kochhar said.
In Thursday's weak market, ICICI Bank shares on the Bombay Stock Exchange ended 2.7% lower at Rs 853.
Times of India, January 21, 2010, Page 25
MUMBAI: ICICI Bank, the country's largest private sector bank, reported a 13.4% drop in net profit for the quarter ended December 2009 to Rs 1,101 crore from Rs 1,272 crore it earned during the corresponding quarter in the previous year. The bank's total income too dropped about 25% to Rs 7,762 crore during Q3FY10 from Rs 10,350 crore a year earlier.
The drop in net profit as well as in total income were largely attributed to fall in treasury income for the bank as yields in the debt market rose. For most companies in the financial services business, the lower rate of interest in the economy led to lower interest income.
ICICI Bank's loan and deposit books contracted during 2009 but top officials said credit demand was expected to pick up as the economy revives. It also said quality of its loans were improving because of conservative lending policies and revival in economic activities had slowed the rise in loan defaults.
‘‘The home loan registrations are going up month-on-month and car sales are going up month-on-month,'' Chanda Kochhar, CEO & MD, ICICI Bank, said during a conference call on Thursday. ‘‘Both these activities are seeing huge increase. So obviously, even the loans against homes or cars will see a good increase,'' Kochhar said.
In Thursday's weak market, ICICI Bank shares on the Bombay Stock Exchange ended 2.7% lower at Rs 853.
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