India's ICICI Bank Ltd posted its slowest quarterly profit growth in four years as the ability of corporate borrowers to repay loans declined and the amount of funds set aside for bad debt almost doubled.
India's biggest private sector lender, like rivals Yes Bank Ltd, HDFC Bank Ltd and IndusInd Bank Ltd , has had to contend with a wave of defaults by companies struggling to make ends meet as India's economy grows at its slowest pace in a decade.
As a result, banks have increased the proportion of funds they extend to consumers from whom demand for home and car loans in particular has picked up as banks open branches in new territories.
That shift helped ICICI on Wednesday report net profit of 25.3 billion rupees ($404.12 million) in October-December from 22.5 billion a year earlier. That compared with the 24.6 billion rupee mean estimate of 23 analysts polled by Thomson Reuters I/B/E/S.
India's biggest private sector lender, like rivals Yes Bank Ltd, HDFC Bank Ltd and IndusInd Bank Ltd , has had to contend with a wave of defaults by companies struggling to make ends meet as India's economy grows at its slowest pace in a decade.
As a result, banks have increased the proportion of funds they extend to consumers from whom demand for home and car loans in particular has picked up as banks open branches in new territories.
That shift helped ICICI on Wednesday report net profit of 25.3 billion rupees ($404.12 million) in October-December from 22.5 billion a year earlier. That compared with the 24.6 billion rupee mean estimate of 23 analysts polled by Thomson Reuters I/B/E/S.
Net interest income, or the difference between interest earned and paid, rose about 22 percent to 42.6 billion rupees.
Tax expense rose 45 percent to 12.1 billion rupees, hurting profit growth.Read more..
Source: Business News Hindi
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