ICICI Bank posts Rs 1,908 cr Q1 standalone net profit

Mumbai: Improvement in asset quality led ICICI Bank to report a consolidated net profit of Rs 2,513.69 crore for the June quarter, against Rs 4.93 crore profit in the year-ago period.

On a standalone basis, the second largest private sector bank by assets reported a net profit of Rs 1,908 crore against a Rs 119 crore loss for June 2018.

The bank’s core net interest income grew 26.8 per cent to Rs 7,737 crore on expansion in net interest margin to 3.61 per cent from 3.19 per cent in the year-ago period and an 18 per cent credit growth fuelled by retail segment’s 22 per cent expansion.

The bank management, consisting of executive director-designate Sandeep Batra and group chief financial officer Rakesh Jha, said expansion in NIM was due to higher quantum of interest-paying assets as non-performing assets reduced and also write-backs on taxation front.

The bank will pass on benefits of dip in rates to borrowers which shall aid transmission, they added.

The bank added Rs 2,779 crore to gross non-performing assets during the quarter, compared to Rs 3,547 crore in the year-ago period.

The retail sector additions at Rs 1,511 crore were higher than the corporate and SME segment’s Rs 1,268 crore. Over Rs 452 crore of the slippages came from Kisan credit card portfolio, the bank disclosed.

On the corporate side, the bank said the overall quantum of portfolio rated BB and below reduced to Rs 15,355 crore as of June from the over Rs 17,000 crore in April on slippage into NPAs and upgrades. The bank wrote off Rs 2,200 crore of NPAs during the quarter.

The bank’s gross NPA ratio reduced to 6.49 per cent as against 8.81 per cent in year-ago period, while the improvement was faster in net NPAs, which reduced to 1.77 per cent from 4.19 per cent. The provision coverage ratio improved to over 74 per cent.

Share of the low-cost current and saving account balances slipped to 43.4 per cent on an average basis against 46 per cent as large share of deposits are moving into term deposits. The bank’s capital adequacy ratio came at 16.19 per cent, including core capital at 14.6 per cent.