Mumbai: ICICI Bank Ltd on Friday reported a larger-than-expected decline in September quarter net profit because of a smaller one-time gain and said it expects bad loan additions in the current financial year to be lower than last year's.
Non-interest income in the quarter included gains of 20.12 billion rupees from sale of stake in the initial public offering of unit ICICI Lombard General Insurance, ICICI said, lower than 56.82 billion rupees raked in from the stake sale in ICICI Prudential Life Insurance in the year ago quarter.
During the quarter under review, the bank made provisions (other than tax) and contingencies of Rs 4,502 crore, 36 percent lower than Rs 7,083 crore in the same quarter of the previous fiscal.
During the current financial year, the bank made an additional provisioning of Rs 651.2 crore for the 12 accounts referred to the Insolvency and Bankruptcy Code, the private sector lender said in its stock exchange filing.
Recently, Axis Bank had shocked the Street when it reported a difference of Rs 5,633 crore in NPAs for the period ended March 31, 2017.
The non-interest income slid to Rs 5,186 crore from the year-agos Rs 9,120 crore achieved on the back of the stake sale in its insurance arms IPO, but fee income was up.
Net profit for the first half of the fiscal declined to Rs 511.78 crore from Rs 585.86 crore in the year-ago period.
YES Bank's non-performing assets (NPA) ratio rose more than 100 percent to 1.82 per cent of total loans, wrecked by the RBI's risk based supervision (RBS) finding a divergence or under-reporting of Rs 6,355 crore of assets which should have been classified as NPAs. About Rs 440 crore of loans in this pool have been sold to ARCs.
The write-offs came at Rs 2,298 crore, while the recoveries and upgrades stood at Rs 1,029 crore.
The bank said that it has exposure to 18 accounts that are part of a second list of defaulters compiled by RBI. She forecast domestic loan growth in the financial year to be about 15 percent, led by as much 20 percent rise in retail loans.
"We continue to maintain our focused approach to growth, in line with our objective of improving the portfolio mix", said Chanda Kochhar, MD & CEO, ICICI Bank, in the post-earnings interaction with the media.
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.