ICICI Bank of India Sees Profits Shrink
April 26, 2009 by Stephen Kersey
Filed under Business
Banking woes aren’t limited to the United States. In India, ICICI Bank saw its profits plummet in the latest quarter. ICICI Bank is India’s largest bank, with more than 1,400 branches, and it’s growing quickly. Soon, the company says it will boast more than 2,000 branches.
Icici Bank (Image: Flickr)
In the first quarter of 2009, ICICI Bank posted a profit of about $145 million. In 2008, the first quarter saw the bank post profits of more than $225 million. The total income for the bank also dropped about 10%.
“Given the current scenario,” said ICICI Bank CFO Chanda Kochhar, “the priority is to conserve capital and maintain the quality of book.”
With worries of impending bad loans on the horizon, ICICI Bank has taken steps to limit their risk. They’ve lowered the money on its loan books and they’ve prepared more money to cover bad loans.
ICICI Bank said that their profit loss was due to lowered income from fees in both the retail and commercial sectors.
