India's second-largest private sector lender ICICI Bank reported a drop of 34% in the standalone net profit for the July-September quarter to Rs 2,058.19 crore.
India’s second-largest private sector lender ICICI Bank reported a drop of 34% in the standalone net profit for the July-September quarter to Rs 2,058.19 crore. The bank posted a profit of Rs 3,102.27 crore in the same period a year ago. The bank has missed the Reuters profit estimate of Rs 24.91 billion. The total income for the same quarter under review dipped 17.55% to Rs 18,763.29 crore for the quarter ended 30 September 2017 as compared to Rs 22,759.08 crore. The gross NPAs (non-performing assets) for the quarter ended 30 September 2017 was 7.87% of the total loans and advances as compared to 6.12% as at 30 September 2016.
Interest earned & NIM
The total interest earned stood at Rs 13,577.05 crore in the second-quarter of the financial year 2018 versus Rs 13,639.4 crore in the corresponding quarter of previous fiscal. September quarter NIM (net interest margin) stood at 3.27% versus 3.13% in the same period last fiscal.
Provisions and contingencies
The bank’s provisions and contingencies reduced to Rs 4,502.93 crore for the quarter ended 30 September versus Rs 7,082.69 crore.
There is a marginal improvement in ICICI Bank’s asset quality. The gross NPAs for the September quarter reduced to 7.87% quarter-on-quarter from 7.99% of the total advances made. The net NPAs also came down to 4.43% from 4.86%.
Shares of ICICI Bank ended 1% higher at Rs 302.25 on NSE ahead of its results today. The stock of ICICI Bank had outperformed the key equity indices Sensex and Nifty returning about 30% since the beginning of this year so far while the indices have managed to return about 24-25%.