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 bad loans.
Net profit fell to Rs1,650.24 crore in the quarter ended 31 December from Rs2,441.82 crore a year ago. According to 26 Bloomberg analyst estimates, the bank was expected to post a net profit of Rs1,902.50 crore.
Provisions and contingencies rose 31.59% to Rs3,569.56 crore from Rs2,712.70 crore a year ago. On a quarter-on-quarter, they fell 20.73% from Rs 4,502.93 crore.
Gross non-performing assets (NPAs) rose 20.88% to Rs46,038.70 crore at the end of the December quarter from Rs38.084.97 crore in the same quarter last year.
As on 31 December, ICICI Bank had outstanding loans of Rs10,060.75 crore to 18 account holders against which insolvency proceedings have been initiated; of that, 98.6% amounting to Rs9,915.06 crore has been advanced to accounts classified as NPA. The bank has made provisions of Rs3,662.59 crore against these outstanding loans.
Gross NPA additions declined 37.76% to Rs 4,380 crore. Recoveries and upgrades from NPAs were at Rs1,108 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.
Net interest income (NII) or the core income a bank earns by giving loans was up 6.38% to Rs5,705.27 crore from Rs5,363.35 crore last year. Non-interest income fell 19.59% to Rs3,166.87 crore from Rs3938.31 crore a year ago. Advances rose 8.86% from a year ago to Rs 5.05 trillion. Deposits climbed 5.58% to Rs 5.17 trillion.
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