ICICI Bank Profit Drops 5% In March Quarter On Higher Provisioning For Bad Loans

NDTV Profit Team

06 May 2019, 04:32 PM IST

ICICI Bank shares ended flat at Rs401.80 apiece on the National Stock Exchange.

ICICI Bank on Monday reported a 5 per cent decline in net profit to Rs 969 crore for the quarter ended March 31. Its net profit had stood at Rs 1,020 crore for the corresponding period last year, according to a regulatory filing by the private sector lender after market hours. ICICI Bank's profit declined due to higher provisioning for bad loans in the January-March quarter. ICICI Bank made a provisioning of Rs 5,451 crore compared with Rs 4,244 crore in the previous quarter, according to the filing.

ICICI Bank's quarterly net profit missed analysts' expectations. Analysts had on an average expected ICICI Bank to report a profit of Rs 2,129 crore, news agency Reuters reported citing data from Refinitiv.

The bank reported a 4.9 per cent increase in total income to Rs 20,914 crore.

Its net interest income (NII) grew 26.54 per cent to Rs. 7,620 crore, from Rs. 6,021.67 crore in the quarter ended March 31, 2018.

ICICI Bank said its net interest margin stood at 3.72 per cent in the fourth quarter of financial year 2018-19.

ICICI Bank's gross non-performing loans as a percentage of total advances stood at 6.70 per cent at the end of March quarter, as against 7.75 per cent in the previous quarter.

The lender said its net non-performing assets (NPAs) came in at the lowest level in the last 13 quarters. Its net NPA ratio decreased to 2.06 per cent on March 31, 2019, from 2.58 per cent on December 31, 2018, the regulatory filing added.

ICICI Bank's total provisioning as of March 31, 2018 stood at Rs 7,261.03 crore in respect to the outstanding loans of Rs 10,306.50 crore, amounting to a provision coverage of 73.94 per cent, ICICI Bank added.

As per the Reserve Bank of India's guidelines, ICICI Bank declared its loan exposure to Infrastructure Leasing & Financial Services Limited (IL&FS) entities amounting to Rs 275.94 crore as non-performing assets, and provided Rs 145.97 crore for the same, according to its exchange filing.

ICICI Bank shares ended flat at Rs 401.80 apiece on the National Stock Exchange, as against a 0.97 per cent fall in the benchmark Nifty index, ahead of the corporate earnings announcement by the lender.