ICICI Bank September Quarter Profit Falls 34%

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In Q1 of FY18, the bank's net NPAs were the lowest in the last seven quarters at Rs 25,306 crore.

The Reserve Bank of India (RBI) had identified 12 large accounts with exposure of more than Rs 5,000 crore and more than 60 per cent of which is recognised as NPAs.

According to ICICI Bank, its gross and net non performing assets (NPA) net of write-offs as on September 30 stood at Rs 44,488.54 crore and Rs 24,129.78 crore.

"The bank's asset quality continues to demonstrate resilience after duly incorporating the full impact of the RBS observations for 2016-17", Rana Kapoor, managing director & CEO of Yes Bank, said. Last year, it had notched a one-time gain of over Rs 5,600 crore on a stake sale in its life insurance arm which boosted profits. But private sector banks have been able to gain market share from their dominant state-run rivals which account for bulk of the troubled loans.

The proportion of low-priced current account, savings account (CASA) deposits in total deposits improved to 23.67 per cent in the reporting quarter from 19.89 per cent in the year-ago quarter.

Net profit in the quarter fell 33.7% from a year ago to Rs2,058.19 crore from Rs3,102.27 crore.

"We expect additions to NPA in the current fiscal will be lower than in the previous year", she said.

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The bank's total capital adequacy ratio (CAR) was at 17.89 percent and Tier-I auto was at 14.85 per cent as on September 30, 2017.

During the current financial year, the bank made an additional provisioning of Rs 651.2 crore for the 12 accounts referred to the Insolvency and Bankruptcy Code, the private sector lender said in its stock exchange filing. "It always comes out for us in Q3 and we will disclose it at that time". "The resolutions are being discussed at various forums including JLF (joint lenders' forum) and it is too early to say", Kochhar said.

ICICI Banks total provisions went up to Rs 4,502 crore as compared the quarter agos Rs 2,483 crore.

The management in an analyst call said about Rs 2,986 crore of the Rs 6,355 crore is upgraded from March to date with an approval of the Board and statutory auditors, while another Rs 1,715.85 crore has been repaid. A Bloomberg analysts' survey forecast a net profit of Rs 2,570 crore.

Net interest income (interest earned less interest expended) was up 39 per cent year-on-year (y-o-y) at ₹420 crore.

Net interest margin improved to 3.74 per cent in the reporting quarter against 3.41 per cent in the year-ago quarter.

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