For 3QFY2012, ICICI Bank posted a healthy set of numbers with net profit growing by 20.3% y-o-y to Rs 1,728 crore, which were mostly in-line with our estimates.

Net interest income grew by healthy 17.3% y-o-y to Rs 2,712 crore; however, growth in non-interest income was moderate at 8.2% y-o-y to Rs 1,892crore. Provisioning expenses declined by 26.4% y-o-y to Rs 341 crore, leading to net profit growing by 20.3% y-o-y to Rs 1,728 crore in 3QFY2012.

The bank’s asset quality improved during 3QFY2012, with gross and net NPA levels declining by 3% and 6.2% sequentially, respectively. As of 3QFY2012, gross NPA ratio stands at 3.8% (4.1% in 2QFY2012), while net NPA ratio stands at 0.8% (0.9% in 2QFY2012). NPA coverage ratio remains healthy at 78.9%.

We maintain our BUY rating on the stock with a target price of Rs 1,061.