ICICI Bank announced its Q4 2016 numbers under difficult circumstances including weak global economic environment and sharp downturn in the commodity cycle. The bank’s net profit came down sharply weighed down by rising non-performing assets (NPAs). However, ICICI Bank’s MD and CEO, Chanda Kochchar said the lender was “keeping its balance sheet ready and strong.”
Here are 10 takeaways of ICICI Bank results:
-Standalone profit after tax was Rs 702 crore for Q4-2016 compared to Rs 2,922 crore for Q4-2015.
-The bank’s year-on-year credit growth in domestic advances was 16 per cent. The Bank has
continued to see robust growth in its retail business resulting in a year-on-year growth of 23 per cent in the retail portfolio. The retail portfolio constituted about 47 per cent of the loan portfolio. Total advances increased by 12 per cent year-on-year to Rs 435,264 crore on March 31, 2016 from Rs 387,522 crore on March 31, 2015.
-The bank’s retail portfolio crossed Rs 2,00,000 crore during the quarter ended March 31, 2016 (Q4-2016) and grew by 23 per cent year-on-year.
-The bank saw a 17 per cent year-on-year growth in current and savings account (CASA) deposits; CASA ratio at 45.8% at March 31, 2016.
-Net non-performing assets at March 31, 2016 were Rs 13,297 crore compared to Rs 10,014 crore on December 31, 2015. The increase in non-performing assets was primarily due to the continuing challenges in the operating and recovery environment, the bank said.
-Provisions, excluding collective contingency and related reserve, were at Rs 3,326 crore in Q4-2016 compared to Rs 2,844 crore in Q3-2016 and Rs 1,345 crore in Q3- 2016.
-Capital adequacy The Bank’s capital adequacy at March 31, 2016 as per Reserve Bank of India’s guidelines on Basel III norms was 16.64% and Tier-1 capital adequacy was 13.09%, significantly higher than the regulatory requirements.
-Net interest income increased by 6 per cent to Rs 5,404 crore in the quarter ended March 31, 2016 (Q4 2016) from Rs 5,079 crore in the quarter ended March 31, 2015 (Q4 2015).
-The Bank has made a collective contingency and related reserve of Rs 3,600 crore during Q4 2016, over and above provisions made for non-performing and restructured loans as per Reserve Bank of India guidelines.
-The sectors where borrowers were impacted due to economic factors were like iron and steel, mining, power, rigs and cement. The Bank has on a prudent basis made a collective contingency and related reserve of Rs 3,600 crore during Q4 2016 towards exposures to these sectors.