ICICI Bank Ltd, India's third-biggest lender by assets, reported a bigger-than-expected 34 percent fall in second-quarter profit on lower income and due to higher provisions for stressed loans and bankruptcy cases.
The bank had reported a net profit of Rs 356.91 crore during the corresponding period a year ago.
Analysts on average had expected a net profit of 24.91 billion rupees, according to Thomson Reuters data.
Its bad loan situation deteriorated as the gross non- performing assets (GNPAs) grew to Rs 2,720.34 crore (1.82 per cent) during the second quarter of 2017-18 from Rs 916.68 crore (0.83 per cent) in the corresponding period past year.
The banks core net interest income grew 9 per cent to Rs 5,709 crore on a 6.3 per cent overall loan growth (including 12.8 per cent in domestic market), and a 0.14 per cent expansion in net interest margin to 3.27 per cent.
In the year-ago quarter, the lender had gained Rs5,682.03 crore by selling a stake in its life insurance arm. About Rs 440 crore of loans in this pool have been sold to ARCs.
Shares of YES Bank today tanked over 7 per cent as the company's bad loan situation worsened during the second quarter of 2017-18 fiscal. On the corporate growth, Kochhar said the bank is growing the desired book, excluding the low rated loans, restructured book among others, at 14 per cent. 19% year-on-year growth in retail portfolio.
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At ICICI Bank, gross NPA additions declined to Rs4,674 crore in the fiscal second quarter from Rs4,976 crore a quarter ago and Rs8,029 crore a year ago.
Provisions and contingencies fell 36.42% to Rs4,502.93 crore from Rs7,082.69 crore a year ago.
The bank's total income also suffered a fall of Rs 3,996.79 crore for the quarter ended September 30 as compared to the previous corresponding period.
Yes Bank, however, said of the total exposure under RBI's assessment, around 81 per cent has been repaid/resolved or classified as standard.
During the quarter, gross NPAs in absolute terms rose to Rs 2,720.34 crore against Rs 1,364.38 crore in the preceding quarter and Rs 916.68 crore in the same quarter a year ago.
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.