Mumbai: ICICI Bank, India’s No.2 lender, reported a 35% rise in quarterly profit, lagging forecasts, as lower treasury income and higher provisions for bad loans countered a pick-up in credit demand.
January-March net profit rose to Rs1,006 crore from Rs744 crore a year earlier, ICICI said on Saturday. A Reuters poll of analysts had forecast net profit of Rs1,089 crore.
Bank credit in India grew an annual 17.05% in early April, according to the Reserve Bank of India’s provisional data, in tune with a rise in business and consumer confidence, from a low 9.7% in October and compared with 16.7% at end-March.
Analysts expect loan demand to pick up further in the first half of 2010-11 that started on 1 April as industries will need more funds to expand operations in an economy forecast to grow more than 8% this fiscal year.
Shares in ICICI Bank, valued at nearly $24.5 billion, have risen 11.4% this year, just beating the sector index. The main Mumbai market is up 1.3%.