1. ICICI Bank shares fall over 3% on 2-fold rise in provisioning for bad loans

ICICI Bank shares fall over 3% on 2-fold rise in provisioning for bad loans

ICICI Bank shares fell after the company reported 75.97 per cent decline in standalone net profit at Rs 701.89 crore for the fourth quarter ended March 31 on account of 2-fold rise in provisioning for bad loans.

By: | Updated: April 29, 2016 5:38 PM
ICICI Bank shares ICICI Bank shares fell after the company reported 75.97 per cent decline in standalone net profit at Rs 701.89 crore for the fourth quarter ended March 31 on account of 2-fold rise in provisioning for bad loans. (Photo: PTI)

ICICI Bank shares fell over 3 per cent on Friday after the company reported 75.97 per cent decline in standalone net profit at Rs 701.89 crore for the fourth quarter ended March 31 on account of 2-fold rise in provisioning for bad loans. The bank’s net profit in the same quarter of the previous fiscal was Rs 2,922 crore.

At 2.49 am, ICICI Bank shares were trading 2.64 per cent down at Rs 233.80. The scrip opened at Rs 240.10 and has touhced a high and low of Rs 244.00 and Rs 231.40, respectively, in trade so far. Later, the share price of the company closed 1.48 per cent down at Rs 236.60.

Its total income increased to Rs 18,590.86 crore for the January-March quarter of 2015-16, up 14.51 per cent from Rs 16,234.73 crore in the year-ago period, ICICI Bank said in a filing to BSE.

During the quarter under review, its provisioning for bad loans was up substantially to Rs 3,326.21 crore as against Rs 1,344.73 crore in the January-March quarter of 2014-15.

“The weak global economic environment, the sharp downturn in the commodity cycle and the gradual nature of the domestic economic recovery has adversely impacted the borrowers in certain sectors like iron and steel, mining, power, rigs and cement,” ICICI Bank said.

The bank’s net interest income increased by 6 per cent to Rs 5,404 crore in fourth quarter of 2015-16 from Rs 5,079 crore in the corresponding quarter of the previous fiscal.

On the asset quality front, the gross non-performing assets (NPA) or bad loans rose to 5.82 per cent of the gross advances during the last quarter, from 3.78 per cent in the corresponding quarter of the previous fiscal.

Also, net NPAs grew to 2.98 per cent of net advances, over 1.61 per cent in the year-ago period.

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