ICICI Bank Q2 net profit plunges 34% as bad loans rise

ICICI Bank Q2 net profit plunges 34% as bad loans rise

The bank had reported a provision of Rs 946.3 crore for the year.

Recently, Axis Bank had shocked the Street when it reported a difference of Rs 5,633 crore in NPAs for the period ended March 31, 2017.

While total assets showed a growth of 26.7 per cent to Rs 2,37,394.1 crore, total deposits were up 23.4 per cent over a year ago at Rs 1,57,989.8 crore.

She said the trend of NPA accretion is slowing down and the banks drilled down list of assets which can slip has also narrowed down to Rs 19,590 crore now from the Rs 20,358 crore in the year-ago period. The net NPA too rose to 7.02 per cent from 6.69 per cent.

Mumbai: Private lender Yes Bank on Thursday said its September-quarter net profit grew 25 per cent to 1,002 crore, but bad loans increased massively after the RBI's assessment showed that it had under-reported NPAs in the last fiscal by Rs 6,355 crore.

The proportion of low-priced current account, savings account (CASA) deposits in total deposits improved to 23.67 per cent in the reporting quarter from 19.89 per cent in the year-ago quarter.

More news: Dont'a Hightower out for season

During the quarter under review, the bank made provisions (other than tax) and contingencies of Rs 4,502 crore, 36 percent lower than Rs 7,083 crore in the same quarter of the previous fiscal.

Banking analysts feel that ICICI Bank is in a better position now as the divergence report is likely to be out in the third quarter and slippages are under control.

"He said,".actually our operating profit has increased, however, the reduction is there (in net profit) mainly because of higher provisioning, our target is to increase our provision coverage ratio to 60 per cent in the mid-term". The year-on-year growth in domestic advances was 13 percent driven by healthy retail loans. On a quarter-on-quarter basis, it surged 72.6 percent from Rs 2,608.74 crore. The outstanding exposure to these accounts is Rs10,476 crore, and 98.7% of the amount is classified as an NPA.

"We continue to maintain our focused approach to growth, in line with our objective of improving the portfolio mix", said Chanda Kochhar, MD & CEO, ICICI Bank, in the post-earnings interaction with the media.

The bank scrip closed 0.57 per cent up at Rs 300.95 a piece on the BSE, as against a 0.03 per cent gains on the benchmark.

Related Articles