India’s largest private sector, ICICI, has
halved first quarter retail banking pre-tax losses to INR2.17bn
($47.1m) from a loss of INR4.37bn in the same period last year.
For the group as a whole, ICICI posted first
quarter net profits of INR10.3bn, up 16.8% from a year ago.
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While total deposits dipped almost 1% to
INR2.01tr, ICICI successfully grew its low cost current and savings
account (CASA) deposits by almost one-third, to INR846.2bn at the
end of the first quarter.
ICICI’s CASA hit resulted in a soaring CASA
ratio, up from 30.4% a year ago to 42.1%.
ICICI chief executive
Chanda Kochhar told RBI last month that ICICI’s
strategy had been focused on building its low-cost
deposit franchise.
“While this led to a reduction in overall
deposits during the year, the share of low-cost deposits in the
funding mix has increased allowing the bank to participate in
growth opportunities more profitably.”
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By GlobalDataLower losses from unsecured retail lending
resulted in a 40% decrease in provisions to INR7.98bn, while
ICICI’s net non-performing assets ratio fell to 1.62% from 2.19% at
the end of the first quarter last year.
