Chillin' out till it needs to be funded
As the usual year end considerations get into the books, banks in India have a relatively strong showing (details in bank results season at http://india.advantages.us) and have made again the bottomline growth of 25 % and Sales growth of 30% an industry benchmark.
ICICI Bank followed results from HDFC and YES at the top of the heap with growth in advances at 19% to Rs 2.24 lakh crores or or $50 billion, implying a balance sheet size of between $75 bln and $100 bln getting into place behind State Bank of India’s $350 bln balance sheet . The Net Interest Margin is also healthy at 2.7% and a continued quarterly Fee based Income of $375 mln, making a neat $1.5 bln for the full year in investment banking fees.
ICICI Bank’s Profits have come higher by 45% for the quarter year on year at $360 mln odd ( at our own flat rate of Rs 40 for the Dollar) NPAs are below 1% (Gross) and the released provisions in this case are more than paper profits as the banks have improved asset quality after a period of even supergrowth across industries and regulatory superimposition of norms on real estate credit. Construction sector will remain slow but that does not impact banks contribution as 25 % of the index and 3X GDP rate of growth, giving larger banks like ICICI, SBI and PNB the momentum to scale into bigger dollars on its balance sheet and the younger agile lot like YES and Indusind to grow at an even pace along side global players like HSBC , Stan Chart and Citi which also make a market share of almost 10% with the pre eminence of urban centers in industrial and thence credit and services growth