June quarter Net at Rs 2,232 crore: ICICI Bank profit falls 25 per cent on higher NPA provisioning

Gross non-performing assets inch up to Rs 27,193 crore in April-June quarter

By: ENS Economic Bureau | Mumbai | Published: July 30, 2016 4:13 am
ICIC, iCICI stocks, ICIC quarter results, icici profits, india banking, icici bank, icici npa, icici npa profit, business news, india news According to the bank, total provisions rose nearly three-fold to Rs 2,515 crore in the first quarter compared with Rs 956 crore in the same period a year ago. (Source: File Photo)

ICICI Bank, India’s largest private sector bank, has reported a 25 per cent fall in its net profit to Rs 2,232 crore for the June quarter as against Rs 2,976 crore in the first quarter of the 2015-16 fiscal due to higher provisioning against non-performing assets (NPAs).

Gross NPAs rose to Rs 27,193.58 crore at the end of the June quarter from Rs 15,137 crore in the same period of last year and Rs 26,221 crore in the March quarter. Gross NPAs as a share of total advances were at 5.87 per cent compared to 3.68 per cent in the same quarter of last financial year. Net NPAs as a share of advances stood at 3.35 per cent as compared to 1.58 per cent a year ago.

The bank has posted 22 per cent fall in consolidated net profit at Rs 2,516 crore for the quarter ended June 30 as compared to a net profit of Rs 3,232 crore in the same quarter of the last fiscal. Shares of ICICI Bank closed at Rs 262.85, down 3.40 per cent, on the BSE.

According to the bank, total provisions rose nearly three-fold to Rs 2,515 crore in the first quarter compared with Rs 956 crore in the same period a year ago. Provisions were 24.4 per cent lower than Rs 3,326 crore set aside in the January-March quarter. Its provision coverage ratio (PCR) fell to 57.1 per cent at the end of the June quarter compared to 61 per cent at the end of the March quarter and much lower than the 69 per cent provision coverage at the end of the June quarter last year. Total income of the bank rose to Rs 16,760 crore in the first quarter of 2015-16, from Rs 15,802 crore in the three month period of last fiscal.

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The year-on-year growth in domestic advances was 17 per cent. The bank has continued to achieve strong growth in its retail business, resulting in a year-on-year growth of 22 per cent in the retail portfolio.

ICICI Bank MD and CEO Chanda Kochhar said the bank’s watch list of debt included Rs 38,723 crore worth loans as against the watch list of loans worth Rs 44,065 crore in March 2016. These loans were sub-investment grade loans which were at the risk of slipping into the non performing assets class. Loans worth Rs 4,559 crore became NPAs in June quarter. The net reduction in exposure to loans in this category was Rs.365 crore. “The total slippages during the quarter, including slippages from restructured assets, were at Rs 8,249 crore,” Kochhar said.

During the three months ended June30, 2016, the bank utilised an amount of Rs 865.44 crore from the collective contingency and related reserve, the bank said. The bank had on a prudent basis made a collective contingency and related reserve during the three months ended March 31, 2016, amounting to Rs 3,600 crore towards exposures to sectors like iron and steel, mining, power, rigs and cement. This was over and above provisions made for non-performing and restructured loans as per RBI guidelines.

 

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