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BLOOMBERG
ICICI Bank Ltd reported a 30% rise in profit, helped by robust demand for retail loans in the world’s most populous country.
Net income climbed to 91.2 billion rupees ($1.1 billion) in the quarter that ended March 31, compared with 70.18 billion rupees a year ago, according to a statement. That beat the average estimate of 90.4 billion rupees in a Bloomberg survey.
Shareholders are assessing whether the nation’s lenders can build on a strong run fuelled by rising interest rates and elevated demand for loans. While the demand for credit remains strong in India, the chase for cheaper deposits has intensified competition and could increase the cost of funds for banks.
Deposits at ICICI Bank grew 10.9% year-on-year to 11.8 trillion rupees in the March quarter, up from the 10.64 trillion rupees the prior year. That was in line with the average estimate of 11.74 trillion rupees in the Bloomberg survey. India’s largest private bank, HDFC Bank, reported strong growth in its deposit mobilisation efforts.
The bank’s retail loans portfolio, which accounts for more than half of its total advances, rose 22.7% from a year ago.
The bank also announced a 8 rupee dividend per equity share.