ICICI Bank, which has suffered reverses following a spike in bad assets and also the dismissal of its chief executive Chanda Kochhar over governance issues, posted a five per cent fall in standalone net profit at Rs 969 crore for the three months ended March 2019 as against Rs 1,020 crore a year ago.
However, aided by the subsidiaries, the bank posted a 2.45 per cent rise in consolidated net profit for the March quarter at Rs 1,170 crore against Rs 1,142 crore in the same period a year ago.
For the full year, its profit plunged to Rs 3,363 crore from Rs 6,777 crore in FY 2018.
The net NPA ratio decreased from 2.58 per cent as of December 2018 to 2.06 per cent as of March 2019. The provision coverage ratio on non-performing loans, including cumulative technical/prudential write-offs, increased by 440 bps sequentially to 80.7 per cent on March 31, 2019, further strengthening the balance sheet.
Excluding cumulative technical/prudential write-offs, the provision coverage on non-performing loans was 70.6 per cent as compared to 47.7 per cent as of March 2018. The gross additions to NPA were Rs 3,547 crore. However, gross NPAs declined from Rs 54,062 crore in March 2018 to Rs 46,291 crore by March 2019.
During the quarter, the bank wrote off Rs 7,300 crore of loans and the overall provision coverage ratio improved to 80 per cent from 60 per cent. Share of the advances to companies rated BB and below dipped marginally to Rs 17,525 crore.
The bank classified a Rs 276-crore exposure to the crisis-ridden IL&FS as non-performing during the quarter, for which it has a provision of Rs 145 crore. It also has a non- fund exposure of Rs 545 crore to the group and has set aside Rs 468 crore as provisions against it.
The bank witnessed a 14 per cent growth in corporate advances during the year, 20 per cent in small businesses, while the overseas book shrunk. It refused to share an outlook for FY20, maintaining that it will grow faster than the industry. The bank saw a 16 per cent deposit growth in FY19 and the share of the low-cost current and savings account deposits stood at 49 per cent. Its standalone capital adequacy stood at 16.89 per cent, including 15 per cent in tier-I.
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