Aided by a decline in bad loans and provisions, ICICI Bank on Saturday reported a standalone net profit of Rs 1,908 crore for the first quarter ended June 2019 as against a net loss of Rs 120 crore in the same quarter a year ago.
Gross non-performing assets (NPAs) declined to Rs 45,763 crore (6.49 per cent of advances) in the June 2019 quarter as against Rs 46,291 crore in the March 2019 quarter and Rs 53,464 crore (8.81 per cent) in the June 2018 quarter. the bank said.
Total income on standalone basis in the reported quarter rose to Rs 21,405.50 crore from Rs 18,574.17 crore a year earlier, the private-sector bank said in a regulatory filing.
On a consolidated basis, the bank’s net profit for the April-June period stood at Rs 2,513.69 crore as against Rs 5 crore in the corresponding quarter of 2018. The bank’s income (consolidated) rose to Rs 33,868.89 crore in the latest quarter from Rs 27,174.12 crore in April-June 2018.
The bank witnessed an improvement in asset quality as gross non-performing assets (NPAs) fell to 6.49 per cent of the gross advances by the end of June 2019, from 8.81 per cent a year ago. Net NPAs were 1.77 per cent, down from 4.19 per cent a year ago.
The provisioning for bad loans and contingencies fell to Rs 3,495.73 crore for April-June 2019 as against Rs 5,971.29 crore a year earlier.
“Gross NPA additions in Q1 of 2020 were Rs 2,779 crore compared to Rs 3,547 crore in the quarter ended March 2019 (Q4-2019),” it said.
The gross additions to NPA were Rs 2,779 crore in Q1 of 2020 compared to Rs 4,036 crore in Q1-2019 and Rs 3,547 crore in Q4-2019. Recoveries and upgrades of non-performing loans were 931 crore in Q1-2020. As on June 30, 2019, the fund-based and non-fund based outstanding to borrowers rated BB and below (excluding nonperforming assets) was Rs 15,355 crore compared to Rs 24,629 crore in June 2018.
According to the bank, the year-on-year growth in domestic advances was 18 per cent as of June 2019.
“The bank has continued to leverage its strong retail franchise, resulting in a 22 per cent year-on-year growth in the retail loan portfolio as of June 2019. Excluding non-performing and restructured loans, the growth in domestic corporate loans was about 13 per cent year-on-year.