On Monday, ICICI Bank Managing Director and CEO Chanda Kochhar claimed the bank’s 3rd quarter performance was “very positive”. She said the bank has come out stronger on all factors and has shown an operating profit of 22% after deducting treasury income.
She was talking to the media at the 40th meeting of the World Economic Forum (WEF), in the Swiss town of Davos. She claimed every trend is very healthy and positive.
Talking further about the bank’s performance in the quarter ending December 2009, she claimed CASA (current account and savings account, economical funds) have increased significantly and the net margin as well as fee income has increased. The bank’s operating expenditure has decreased and provisions are decreasing in each quarter.
When she was asked what her expectation from the current year was, Kochhar said, that in 2009 the bank emerged stronger and in 2010 is looking for more growth. When asked for the reason for decrease in bank’s net profit by 13% in the quarter of October-December, she reported it was due to decrease in treasury income.
There was no treasury income during that quarter and without treasury income, the operating profit went up by 22%. In the previous year the bank had a windfall of treasury income, but it may not be repeated every year.