(Bloomberg) -- ICICI Bank Ltd. posted a rise in second-quarter profit helped by strong interest income even as the coronavirus pandemic constrained growth in the financial sector.
Net income at India’s second-largest private lender rose to 42.51 billion rupees ($570 million) from 6.55 billion rupees a year earlier. That beat expectations from 14 analysts who’d predicted a profit of 28.7 billion rupees, according to data compiled by Bloomberg.
The bank, which raised 150 billion rupees in August to bolster its capital ratios, set aside 29.95 billion rupees in provisions, compared with 25.07 billion rupees a year earlier. Its gross bad loan ratio was 5.17%, compared with 5.46% at the end of quarter ended June.
Despite a six-month loan moratorium, an extension to the relaxation of rules surrounding bad loan classification and a loan restructuring program, many banks are being more cautious about lending to avoid further asset deterioration.
Read about bad loan ratio to jump to two-decade high
Lenders came into the year already weakened by a two-year-old shadow lending crisis that had eroded capital. Struggling with the worst bad loan ratios among major nations, Indian lenders have been rushing to raise capital and tighten risky lending.
(Updates with provision for bad loans in third paragraph)
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