ICICI Bank net profit dips 32% to ₹1,650 cr
MUMBAI: ICICI Bank Ltd on Wednesday reported a 32.42% fall in fiscal third-quarter profit as the bank set aside more money to cover the risk of default on loans that have turned bad.
Net profit fell to ₹1,650.24 crore in the quarter ended December 31 from ₹2,441.82 crore a year ago. According to 26 Bloomberg analyst estimates, the bank was expected to post a net profit of ₹1,902.50 crore.
Provisions and contingencies rose 31.59% to ₹3,569.56 crore from ₹2,712.70 crore a year ago. On a quarter-on-quarter, they fell 20.73% from ₹4,502.93 crore.
Gross non-performing assets (NPAS) rose 20.88% to ₹46,038.70 crore at the end of the December quarter from ₹38.084.97 crore in the same quarter last year.
As of December the bank had outstanding loans of ₹10,060.75 crore to 18 account holders against which insolvency proceedings have been initiated; of that, 98.6% amounting to ₹9,915.06 crore has been advanced to accounts classified as non-performing. The bank has made provisions of ₹3,662.59 crore against these outstanding loans.
Gross NPA additions declined 37.76% to ₹4,380 crore. Recoveries and upgrades from NPAS were at ₹1,108 crore.
As a percentage of total loans, gross NPAS stood at 7.82%, compared to 7.87% in the previous quarter and 7.2% in the year-ago quarter. Net NPAS were at 4.2% in the December quarter compared to 4.43% in the previous quarter and 3.96% in the same quarter last year.