Mumbai (PTI): Country's largest private sector lender ICICI Bank on Monday posted a 42 per cent rise in operating profit for the second quarter during which the bank suffered rumours casting doubts about its financial position, including a run on the bank.

The company's operating profit rose to Rs 2,437 crore for the period under review from Rs 1,712 crore in year-ago period even as the lender has announced exposure in the senior bonds of the now-collapsed Lehman Brothers.

The UK subsidiary of ICICI Bank had exposure in senior bonds of the Lehman Brothers to the tune of $ 80 billion.

The bank and its subsidiaries have entirely exited their non-India linked credit derivatives portfolio at no incremental loss over and above the provisions already made, a release by the lender said.

After taking into account the earnings of all domestic and overseas subsidiaries, the consolidated net profit of the bank dropped 27.4 per cent to Rs 651.48 crore in the July-September quarter.

The bank said that its operating expenses dropped by 12 per cent due to its cost-rationalisation measures and its capital adequacy ratio currently stands at 14.01 per cent.

On standalone basis, the country's top private sector lender said profit after tax rose to Rs 1,014 crore, up by 1.1 per cent on a year-on-year basis.

The bank's unconsolidated total income rose to Rs 9,712.13 crore for the quarter from Rs 9,588.41 crore in the same period last year.

Consolidated revenue grew to Rs 15,590.46 crore from Rs 13,850.57 crore in the quarter under review. The bank's net interest income rose by 20 per cent to Rs 2,148 crore and fee income by 26 per cent to Rs 1,876 crore.

However, its total deposits fell marginally on a year-on-basis due to reduction in term deposits.