ICICI Bank Q2 profit down 34% to Rs2,058 crore, bad loans stable

ICICI Bank Q2 profit down 34% to Rs2,058 crore, bad loans stable

The private sector lender yesterday reported a net profit of Rs 1,002.73 crore in the second quarter, up about 25 per cent year-on-year.

ICICI, among the three domestic banks considered "too big to fail" by the country's central bank, reported a net profit of 20.58 billion rupees ($316.51 million) in the quarter ended September 30, missing analysts' expectations of 24.91 billion rupees.

Analysts on average had expected a profit of 24.91 billion rupees, Thomson Reuters data shows.

Total income during July-September quarter stood at Rs 11,994.64 crore, down from Rs 12,187.12 crore in the same quarter a year ago, Canara Bank said in a BSE filing.

On the goal for March 2018, the bank officials said it will be continued thrust on retail businesses and asset quality- CASA and retail deposits, retail credit, fee income, containing NPA, resolution to large NPA accounts, recovery and up-gradation, and improving operational financial ratios such as NIM (Net Interest Margin), RoA (Return on assets), RoE (Return on Equity) and cost to income.

In the year-ago quarter, the lender had gained Rs5,682.03 crore by selling a stake in its life insurance arm.

As part of this review, the central bank looks to see if banks have correctly classified loans, taking into account repayment trends and other factors.

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Kochhar said ICICI Bank retains its earlier guidance that additions to non-performing assets (NPAs) this fiscal year will be lower than previous year's.

Higher under-reporting also forced the bank to hike its provisions to Rs 443 crore during the quarter, much higher than the Rs 250 crore of provisioning it normally does during a quarter. "Our domestic loan portfolio grew by 12.4 per cent on year-on-year basis, and the retail portfolio grew by 18.6 per cent", she said, adding that the bank expects 15 per cent growth in domestic loans in the current financial year, driven by 18-20 per cent growth in retail loans.

Shares of Yes Bank on Friday tanked almost 10 percent as the company's bad loan situation worsened during the second quarter of 2017-18 fiscal.

Provisions and contingencies fell 36.42% to Rs4,502.93 crore from Rs7,082.69 crore a year ago.

The total fund-based exposure to these 18 accounts which need to be resolved by December 31 is Rs 10,476 crore and the non-fund based exposure is Rs 1,384 crore. On a quarter-on-quarter basis, it surged 72.6 percent from Rs 2,608.74 crore. The bank has earmarked Rs3,299 crore to cover the risk of default against these loans.

ICICI Bank shares rose 0.57% to Rs.300.95 at close of trading on the BSE on a day the benchmark Sensex edged up 0.03% to 33,157.22 points.

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