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ICICI Bank: No signs of loan growth - Views on News from Equitymaster
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ICICI Bank: No signs of loan growth
Nov 24, 2015

ICICI Bank declared the results for the second quarter of financial year 2015-16 (2QFY16). The bank has reported 13% YoY growth in net interest income and 12% YoY growth in net profits for 2QFY16. Here is our analysis of the results.

Performance summary

  • Net interest income grows by 13% in 2QFY16 on the back of 2.5% YoY growth in advances while net interest margin (NIM) improves to 3.5% from 3.4% in 1HFY15.
  • Cost to income ratio remains stable at 37.7% in 1HFY16. This is the lowest amongst large private sector banks.
  • Capital adequacy ratio healthy at 16.1% at the end of September 2015.
  • Net NPAs rise to 1.5% of advances in 1HFY16, from 0.96% in 1HFY15. Restructured loans went up to 2.7% of advances in September 2015 from 2.5% in September 2014.
  • Bottomline grows by 12% YoY in 2QFY16 largely due to higher interest margins and cost efficiency.

Standalone financials

Rs (m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Interest income 121,505 130,988 7.8% 239,174 259,114 8.3%
Interest Expense 74,939 78,473 4.7% 147,689 155,448 5.3%
Net Interest Income 46,566 52,515 12.8% 91,485 103,666 13.3%
NIM (%)       3.4% 3.5%  
Other Income 27,383 30,073 9.8% 55,882 59,972 7.3%
Other Expense 26,971 31,004 15.0% 55,221 61,675 11.7%
Provisions and contingencies 8,495 9,421 10.9% 15,755 18,975 20.4%
Profit before tax 38,483 42,163 9.6% 76,391 82,988 8.6%
Tax 11,394 11,861 4.1% 22,747 22,924 0.8%
Profit after tax / (loss) 27,089 30,302 11.9% 53,644 60,064 12.0%
Net profit margin (%) 22.3% 23.1%   22.4% 23.2%  
No. of shares (m)         5,787.5  
Book value per share (Rs)*         149.0  
P/BV (x)         1.8  

* (Standalone book value as on 30th September 2015)

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