ICICI Bank Profit After Tax rises 22% to Rs.3110 crores

The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the year ended March 31, 2007 (FY2007).

Highlights

• Operating profit increased 51% to Rs. 5,874 crore (US$ 1,351 million) for FY2007 from Rs. 3,888 crore (US$ 894 million) for the year ended March 31, 2006 (FY2006).
• Profit after tax increased 22% to Rs. 3,110 crore (US$ 715 million) for FY2007 from Rs. 2,540 crore (US$ 584 million) for FY2006.
• Net interest income increased 41% to Rs. 6,636 crore (US$ 1,527 million) for FY2007 from Rs. 4,709 crore (US$ 1,083 million) for FY2006.
• Fee income increased 45% to Rs. 5,012 crore (US$ 1,153 million) for FY2007 from Rs. 3,447 crore (US$ 793 million) for FY2006.
• Profit before general provisions and tax increased 40% to Rs. 1,369 crore (US$ 315 million) for the quarter ended March 31, 2007 (Q4-2007) from Rs. 975 crore (US$ 224 million) for the quarter ended March 31, 2006.
• Profit after tax for Q4-2007 increased 4% to Rs. 825 crore (US$ 190 million) from Rs. 790 crore (US$ 182 million) for Q4-2006.
• Total advances increased 34% to Rs. 195,866 crore (US$ 45.1 billion) at March 31, 2007 from Rs. 146,163 crore (US$ 33.6 billion) at March 31, 2006.
• Deposits increased 40% to Rs. 230,510 crore (US$ 53.0 billion) at March 31, 2007 from Rs. 165,083 crore (US$ 38.0 billion) at March 31, 2006.

Dividend on equity shares

The Board has recommended a higher dividend of 100% for FY2007 i.e. Rs. 10 per equity share (equivalent to US$ 0.46 per ADS) as compared to 85% for FY2006. The declaration and payment of dividend is subject to requisite approvals. The record/book closure dates shall be announced in due course.

The Bank’s net customer assets increased 35% to Rs. 205,374 crore (US$ 47.2 billion) at March 31, 2007 compared to Rs. 152,049 crore (US$ 35.0 billion) at March 31, 2006. The Bank’s retail advances increased by 39% to Rs. 127,689 crore (US$ 29.4 billion) at March 31, 2007 from Rs. 92,198 crore (US$ 21.2 billion) at March 31, 2006. Retail assets constituted 65% of advances and 62% of customer assets. The Bank is focusing on fee based products and services, as well as capitalising on opportunities presented by the domestic and international expansion of Indian companies. The Bank’s rural portfolio increased by 37% on a year-on-year basis to about Rs. 20,179 crore (US$ 4.6 billion). The Bank is also extending its reach in the small and medium enterprises segment.

The Bank’s total deposits increased 40% to Rs. 230,510 crore (US$ 53.0 billion) at March 31, 2007 from Rs. 165,083 crore (US$ 38.0 billion) at March 31, 2006. During this period, savings deposits increased by 38% from Rs. 20,938 crore (US$ 4.8 billion) to Rs. 28,839 crore (US$ 6.6 billion). The Bank added 141 branches and 1,071 ATMs during the year, taking the number of branches and extension counters to 755 and ATMs to 3,271. The Bank has also received Reserve Bank of India’s approval for amalgamation of Sangli Bank, which will increase the Bank’s branch network to about 950 branches.

The Bank’s capital adequacy at March 31, 2007 was 11.7%1 (including Tier-1 capital adequacy of 7.4%).

The consolidated profit after tax increased 14% to Rs. 2,761 crore (US$ 635 million) in FY2007 from Rs. 2,420 crore (US$ 557 million) in FY2006. The consolidated profit was lower than the standalone profit due to the accounting losses of ICICI Prudential Life Insurance Company (ICICI Life).

Source : Equity Bulls

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