India Bank Earnings: Is time standing still for ICICI Bank ( Q3 2014)

FY 2014 saw another quarter of rising NPAs profits standing still ( up 1 %  )sequentially at INR 25 Bln even as Net NPAs closed in on the 1% mark at 0.94% and new restructuring pipeline still another INR30 Bln though the bank does not expect any restructured loans to come back into Bad Loans. NIMs on the international portfolio remain poor 1.7% with 3.67% Domestic NIMs a 2 basis point move up on 2013 December scores. Domestic Retail portfolios jumped at 28% were dampened by the expected shutdown in Corporate Loans at 7% (calibrated approach) Reducing Provision cover also contributed to better profit. Even with similar NIMs, profit growth should have come in sequentially and even on year comparisons show continued 10-15% grow in Profits only.

NII is up to INR 42.55 Bln but apparently fee income is still potentially up for larger gains at INR 28.55 Bln and NIMs represent a larger share of the total loan yield. Insurance profit of INR 4,380 mln from Life and INR 770 mln from general. Retail Portfolio for the bank is 22% higher with 35% growth in Auto loans. Unfortunately Financial statements releases in India continue to be delayed with only ADR investor conferences transcripts and detailed analysis will wait at least a fortnight from today

Gross NPAs have come down as percent of advances but fresh slippages to Net NPAs counted another INR 12.3 Bln. Branches are 3588 (highest) and 150 new ATMs were also added. The bank has adopted a new one line objective of bringing up Efficiency with Cost below 40%. CASA deposits have also grown 17% keeping it ahead of industry

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