ICICI Bank - Q1FY14 Result Update - GEPL Capital

Slippages came in higher at Rs. 11.2 bn driven by SME and mid-corporate segment. However, recoveries/upgrades of Rs. 3.1 bn and Rs. 4 bn of write-offs (from retail book) resulted in stable GNPAs at 3.23%.The bank restructured Rs. 8.3 bn loans, taking the outstanding restructured pool to 1.96%. The restructuring pipeline under CDR stands at Rs. 10-11 bn. The bank guided credit costs to be contained within 75bps for FY14. NIMs during the quarter were stable at 3.27% on back of 30bps Q-o-Q improvement in international margins to 1.6%, also the bank focuses on increasing the NIM by 10 bps by FY14. However, this to an extent was offset by the 7bps decline in domestic margins to 3.63%.

Strong traction in retail lending: housing and LAP disbursements grew 13% & 17% respectively while mortgages and LAP loan book grew 20-21%. Net advance in overseas branches grew 7% due to rupee depreciation – was flat on dollar basis. Fee income has improved from 3% to 9%. Was primarily driven by retail segment as corporate side was flat. On forex and commercial segment, it has shown some gains. CIR declined to 39% from 41% Y-o-Y. Treasury income was mainly generated from gains on the fixed income portfolio.

Source : Equity Bulls

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