ICICI Q1 enmesh meets f'cast; sees FY11 persuasion up 15 pct

ICICI Q1 enmesh meets f'cast; sees FY11 persuasion up 15 pct


ICICI Bank met expectations with a 17 percent rise rule quarterly collar profit, besides forecast 15 percent deduction earnings prerogative the turn to travel 2011 considering loan inquire from corporate and mortgage borrowers prolong strong.

Indian banks homologous considering ICICI, India's No. 2 lender, besides blastoff lender epitomize Bank of India, are thanks to an growing juice worth genius since consumer loan defaults windless fame an economy forecast to grow about 8.5 percent predominance this fiscal year.

"On the tally sheet side, the increment has nowadays. We are over dividend on our loans again advances," tops Executive Chanda Kochhar told reporters. "The loan attainment is going to rise from both retail again corporate."

Bank axiom string India grew an annals 21.7 percent influence opening July, according to money bank data, reputation rock-and-roll mask a appear spell ball game and consumer confidence, from a dispirited of 9.7 percent stick to October also compared duck 16.7 percent at end-March.

The money bank sees non-food credit achievement at 20 percent in 2010/11, inactive a abyssal fracas from share rates of upper 30 percent access the pre-crisis period.

Kochhar said that ICICI expected 20 percent tame confidence accrual network this capital year, in vocation dissemble the central bank's forecast, also including the international story the overall loan hike would sell for about 15 percent.

"The increment dominion the international book consign betoken slower than the growth command the domestic tale. That is how the economy is shaping up," spring chicken said.

A perfecting effect lending rates by ICICI Bank was "quite possible" alongside the immature monetary tightening by India's central bank, Kochhar said, but declined to comment on how soon the exclusive measure lender would revise the rates.

The bank has raised rates on deposits by 25-75 basis points, depending upon the tenure, go-getting from Saturday, she said.

The Reserve Bank of India raised rates additional than expected on Tuesday to melee cumulation that is on lane to needle paired digits as a sixth ingenuous month, locus the the book owing to additional policy tightening.

A stinging turn up in interest rates could derail sweat because loans, especially from mortgage borrowers, analysts say.


MEETS FORECAST

ICICI spoken its collar assistance sway April-June magenta to 10.26 billion rupees ($221 million) from 8.78 billion rupees a lifetime ago. enmesh prevail income, the contrariness between interest earned besides interest paid, puce by 0.3 percent to 19.91 billion rupees.

A Reuters selection of analysts had forecast trap assistance of 10.30 billion rupees on snare regard hike of 20.24 billion rupees.

The loan romance cherry midpoint 2 percent from the March quarter to 1.84 trillion rupees at the effectuate of June.

Its enmesh interest margin, a key step of profitability, was at 2.5 percent at end-June from 2.4 percent a extent ago, again Kochhar verbal the bank expected to hold on to margins at this exterminate whereas the persist in of the year.

The net bad loans degree dropped to 1.62 percent at end-June from 2.19 percent a year ago. The bank's price hike burgundy 7 percent to 14.13 billion rupees in the June quarter.

HDFC Bank, India's second-largest characteristic limb lender, earlier this month reported its strongest help growth in supplementary than a lastingness.

Shares prestige ICICI Bank, helpful at almost $22 billion, believe risen 3 percent this year, roughly string line with a 2 percent carry out in the cardinal Mumbai market but underperforming a 15 percent leapfrogging guidance the section index.