Reuters
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MUMBAI, April 18 (Reuters) – India’s ICICI Bank reported a stronger-than-expected upward thrust in fourth-quarter revenue on Saturday, driven by sturdy loan increase and decrease provisions for unsuitable loans.
The nation’s 2nd-supreme non-public lender by market capitalisation posted a standalone obtain revenue of 137.02 billion Indian rupees ($1.48 billion) for the three months to March 31, up from 126.30 billion rupees a three hundred and sixty five days earlier.
Analysts had expected a revenue of 126.52 billion rupees, in step with LSEG knowledge.
Chief Govt Sandeep Bakhshi stated profits were supported by decrease provisions, recoveries from written-off accounts and increase in core interest earnings, but he did no longer give a forecast for the new fiscal three hundred and sixty five days, citing ongoing geopolitical uncertainties.
“We are mindful of the geopolitical developments and are keeping a close eye,” Bakhshi stated.
Indian banks saw credit ranking inquire obtain within the 2nd half of the financial three hundred and sixty five days as easing inflation supported consumer spending and company borrowing confirmed indicators of revival.
ICICI Bank’s total loans rose 15.8% from a three hundred and sixty five days earlier, led by continued momentum in retail lending, namely mortgages and automobile loans, with commercial banking and company loans additionally contributing.
Deposits rose 11.4% during the quarter.
Web interest earnings – the variation between interest earned on loans and paid on deposits – rose 8.4% to 229.8 billion rupees, supported by loan increase and stable margins.
The financial institution’s obtain interest margin used to be regular at 4.32%, and is expected to live “range-bound” within the 2026-27 financial three hundred and sixty five days, Bakhshi stated.
Spoiled non-performing sources fell to 1.4% of total loans at the tip of March.
Provisions for unsuitable loans plunged 89% to 9.6 billion rupees, driven by stronger recoveries and fewer new defaults.
The financial institution reported a treasury loss of 1.06 billion rupees, reasonably narrower than the 1.57 billion rupees loss within the outdated quarter, as greater bond yields and the Indian central financial institution’s curbs on distant places substitute positions continued to weigh on banks.
($1=92.5980 Indian rupees)
(Reporting by Ashwin Manikandan. Improving by Emelia Sithole-Matarise and Stamp Potter)
