ICICI Bank misses expectations, Q3 profit down 32%
31 January, 2018, 19:21
Similarly, Q3FY18 net profit plunged by 19.82% from net profit of Rs 2,058.19 crore in preceding quarter.
In absolute value, the gross NPAs stood at Rs 6,232.08 crore against Rs 5,714.91 crore while net NPAs were worth Rs 2,487.65 crore as against Rs 2,699.14 crore.
Provisions and contingencies rose 31.59% to Rs3,569.56 crore from Rs2,712.70 crore a year ago. The loan loss provision for the bank was Rs 3567 crore in Q3 as compared to Rs 2713 crore in the same period of the previous year.
As a result, non-interest income fell to Rs 3167 crore from Rs 3939 crore reported in the year ago period.
The bank, India's third-largest by assets, reported net profit of 16.5 billion rupees ($259.4 million) for the three months to December 31, against 24.42 billion rupees in the same period a year earlier. "Observations do not require any disclosure from the bank", Chanda Kochhar said to media.
The bank said the provision coverage ratio for the second list of accounts, mandated by RBI, that will face insolvency proceedings is 36.5%. The bank expects provisioning to stay elevated in the next few quarters. The public sector bank said it expects to be back in black in the next three-four quarters. The bank's aggregate exposure to the second list, which consists 18 accounts, Rs 10,000 crore.
The domestic loan growth came in at 15.6 per cent, a five-quarter high, and was driven by a 22 per cent rise in retail advances, 15 per cent on the corporate front and a 15.2 per cent on the SMEs. Also, the net interest margin remained flat at 3.3 per cent on a quarter-on-quarter basis.
Kochhar also said the bank did not need to disclose any additional bad loans for the last financial year to March 2017 after a central bank audit of its books. Recoveries and upgrades from NPAs were at Rs1,108 crore.
Brokerage Reliance Securities said the bank surprised "negatively" with its core operating performance and credit costs.
The bank scrip closed 0.10 per cent up at Rs 352.95 a piece on the BSE, as against a 0.19 per cent correction on the benchmark.