ICICI Bank Q3FY14 Net Profit Up By 12.5% at Rs 2531.31 Crore

India's second largest Bank by assets, ICICI Bank posted a modest set of numbers for third quarter of FY14 marred by deteriorating asset quality. Although, bank's net profit grew by 12.5% on yearly basis to stand at Rs 2531.31 crore, it was one of the lowest growth rate exhibited in last few quarters. This is despite bank showing healthy net interest income (NII) and other income growth. NII of the bank grew by 21.6% on yearly basis for Q3FY14 and stood at Rs 4255.06 crore. Other income, which formed one fifth of the total revenue, too grew by 26.5% on yearly basis and stood at Rs 2801 crore. 

Joining other major banks, ICICI Bank too saw an increase in stress in its asset quality. On absolute basis the gross Non-performing assets (NPA) and net NPA of the bank has increased by 4% and 16% on sequential basis respectively. As percentage of gross advances the gross NPA stood at 3.05% at the end of Q3FY14 and has declined by 3 basis points and 26 basis points on sequential and on yearly basis. Nonetheless, net NPA has worsened and is up by 9 basis points and 18 basis points on quarterly and yearly basis respectively.

There was improvement in the Net Interest Margin (NIM) of the bank and it increased from 3.07% at the end of Q3FY13 to 3.32% for Q3FY14.The advances of the bank grew by 16% on yearly basis while deposits increased by mere 10% in the same period. Current and savings account (CASA) ratio remained at 43.3% for Q3FY14.

The shares of the bank closed at Rs 1001.9 in today's trade (January 29, 2014) and are 1.7% lower than the previous closing. The shares of the bank are currently trading at price to book value of 1.6 times.