ICICI Bank profit down for Q1 2008

ICICI Bank today reported a 6.07 per cent drop in net profit to Rs 775.08 for the quarter-ended June 2008 on account of higher provisioning on its investment portfolio.

The bank’s non-tax provisions and contingencies rose 43.5 per cent to Rs 792.49 crore during April-June this year, compared to Rs 552.27 crore during the corresponding period last year. It said that the increase in interest rates and adverse market conditions hit its trading portfolio and its treasury income by Rs 594 crore.

Total income went up 1.6 per cent to Rs 9429.98 crore, while net interest income increased 41% to Rs. 2,090 crore. Expenses dipped 0.5 per cent to almost Rs 7716 crore. Operating profit was 12.46 per cent higher at Rs 1,714 crore

The bank’s total advances went up 13.04 per cent to Rs 224,146 at the end of the first quarter of the current financial year, compared to Rs 198,277 crore at the end of June last year. But compared to the advances of Rs 225,616 crore at the end of the fourth quarter of 2007-08, it was 0.65 per cent lower. On an annual basis, deposits grew 1.6 per cent to Rs 234,461 crore.

The level of net non performing assets was estimated at 1.7 per cent at the end of June this year.