ICICI Bank Q2 net falls 34% to Rs 2,058 cr

Private lender ICICI Bank saw a 34 per cent year-on-year decline in net profit for the September quarter but saw slight improvement in asset quality sequentially.

Standalone net profit was Rs 2,058 crore for the quarter ended September 2017 as against Rs 3,102 crore in the year ago period.

Asset quality slipped as the gross non-performing assets (NPAs) ratio and net NPA ratio stood at 7.87 per cent and 4.43 per cent, respectively, as of September 2017, against 6.12 per cent and 3.21 per cent, respectively, as of September 2016. However, this was an improvement over the last quarter when gross NPA and net NPA figures were 7.99 per cent and 4.86 per cent, respectively.

Net interest margin was 3.27 per cent for the quarter as against 3.13 per cent in year-ago quarter. Net interest income for the quarter rose by 9 per cent to Rs 5,709 crore, from Rs 5,253 crore in the corresponding period of the previous year. Fee income rose by 9 per cent to Rs 2,570 crore.

The bank’s total capital adequacy ratio (CAR) was at 17.89 per cent and Tier-I CAR was at 14.85 per cent as on September 30, 2017.

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

In absolute term, the gross NPA increased to Rs 44,489 crore as against Rs 32,548 crore in the same quarter of the last year.

ICICI Bank