ICICI Bank profit spurts 20% on NII; core profitability a tad lower on FCNR(B)

What happened: ICICI Bank reported a 20% rise in second-quarter net profit, helped by an 18% increase in core net interest income. Core profitability edged lower as FCNR(B) deposits weighed on margins. Key numbers: Net profit up 20%. Net interest income up 18%. NIM fell to 4.18%. Treasury operations swung to a loss amid higher government bond yields. Why it matters: The margin decline and treasury loss indicate that deposit costs and higher bond yields offset part of the gain from core lending growth.

ICICI Bank reported a 20% rise in second-quarter net profit, helped by an 18% increase in core net interest income. Core profitability edged lower as FCNR(B) deposits weighed on margins.

The margin decline and treasury loss indicate that deposit costs and higher bond yields offset part of the gain from core lending growth.