(Bloomberg) -- ICICI Bank Ltd. reported profit that surpassed analyst expectations as demand for loans held strong in the world’s most populous nation, boosting its interest income.
Net income rose to 110.59 billion rupees ($1.3 billion) in the three months ended June 30, up from 96.5 billion rupees a year ago, the lender said in a statement Saturday. That beat the average analyst estimate of 105.17 billion rupees in a Bloomberg survey.
Indian banks are benefiting from a boom in demand for retail loans, while deposit growth has been more sluggish. That’s helped to elevate the credit-deposit ratios at banks and has sparked concern from the Reserve Bank of India. Regulators have also voiced concerns about a potential build-up of risks from the rapid increase in demand for unsecured loans, and have been warning lenders of potential frauds and lapses in customer verification.
Competitors HDFC Bank Ltd. and Kotak Mahindra Bank have reported strong profits and tepid deposit growth in the June quarter. Meanwhile Axis Bank missed analyst estimates on earnings.
ICICI Bank’s loans portfolio is dominated by retail loans that accounted for nearly 55% at the end of March. Deposits and loans grew by 15% in the three months through June.
Net interest margin contracted to 4.36% from 4.78% the prior year, matching analyst estimates of 4.36%.
--With assistance from Alex Gabriel Simon.
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