Honey, I shrunk the bank

India's ICICI Bank may have posted a profit last quarter, but deposits shrunk 6.4 percent even as it increased branches by 13 percent and its rivals gained deposits.

Despite having reported approximately $256 million of unconsolidated net profits, a 25 percent increase from the quarter ended 30 September, the bank saw a decline in net interest income, fee income, and deposits. Concerns about the ICICI Bank's financial health and India's economy were cited as the likely cause of the bank's deposit outflow in a report by Morningstar. Fee income, on the other hand, dropped 25 percent compared to last year's numbers for reasons not specified.

With ICICI Bank's medium-term profitability expected to remain on the downside and India's deposit insurance covering only about $2,000, skeptics are anticipated to pull their deposits.