ICICI Bank achieved a 17 percent rise in quarterly net profit, and expects 15 percent credit growth in the fiscal year to March 2011, as loan demand from corporate and mortgage borrowers is still high.

ICICI bank is India's No. 2 loan lender after the State Bank of India, and are now experiencing an improvement in asset quality as consumer loan defaults are getting less and expected to 8.5.

According to ICICI bank chief executive, growth is to be credited by both corporate and retail sectors.

Bank credit increases by 21.7 percent, according to central bank data, as well as rise in business and consumer confidence, from 9.7 percent last October to 16.7 percent at March end.

The central bank expects non-food credit growth at 20 percent, which still is task as compared to the growth rates of 30 percent in the pre-crisis period. ICICI expects 20 percent domestic credit growth in this year, in line with the central bank's expectation; the overall loan growth would be about 15 percent.

A rise in lending rates by ICICI Bank is possible after the recent monetary stiffening by India's central bank.