ICICI Bank on Tuesday reported a standalone net profit of Rs 2,442 crore for the December quarter of FY17, a fall of 19% year-on-year (Y-o-Y), owing to lower other income and an increase in operating expenses in the form of higher employee costs.
Its other income fell 6.62% on a Y-o-Y basis to Rs 3,938 crore. Net interest income, or the difference between interest earned and expended, stood at Rs 5,363 crore, lower than the same quarter of FY16.
The net interest margin — a key measure of profitability — stood at 3.12% for the reviewed quarter and was 3.13% in the previous quarter. While its domestic margins increased to 3.51% in Q3 FY17, compared to 3.41% in the quarter ended September, margins declined after the international business shrunk 16%.
As far as the credit growth is concerned, ICICI Bank’s retail assets, which constituted 49% of its loan portfolio as on December, saw an 18% Y-o-Y growth, while corporate loans grew 4%. This took its growth in domestic advances to 12% compared to the same period last year.
Chanda Kochhar, MD and CEO, said of the total slippages of R7,000 crore in Q3, R6,600 crore was corporate loan slippages. She said 75% of that was either from the drill-down list, existing NPAs where non-fund based facilities would have devolved or from the restructured book.
The bank’s asset quality deteriorated in Q3 owing to a 17% sequential rise in gross non-performing loans. As a percentage of total advances, the gross NPAs stood at 7.9%, 318 basis points (bps) higher than the previous quarter.
Kochhar said of its total slippages, R250 crore originated from the restructured book. The bank has utilised R526 crore from its contingency reserve which stood at R1,500 crore at the end of December.
Total deposits increased by 14% Y-o-Y to R4.65 lakh crore and the bank’s current accounts savings account (CASA) ratio stood at 49.9%.
ICICI Bank’s shares on the BSE closed at R269.05 on Tuesday, down 0.66%.