Indian lender ICICI Bank has posted a 17 per cent rise in first quarter net income to INR10.3 billion (around $222 million), from INR8.78 billion in the previous year.

The increase was driven by a steady growth in loan activity, which the bank expects to record a 15 per cent rise for the year to 31 March. The strong performance comes at a time the Indian economy is touted to expand by 8.5 per cent in the same period.

The bank's loan book was up during the quarter, from INR1812.06 billion in the prior year period to INR1843.78 billion, as of 30 June 2010. Current and savings account deposits also rose 32 per cent year-on-year to INR846.18 billion. Adding further to the positive result, operating expenses also dropped 2 per cent to INR14.61 billion.

ICICI Bank has 2,016 branches across India and in 18 other countries. It is the largest private sector bank in India in terms of market capitalisation.