ICICI Bank Q2 profit misses estimates, NPAs improve

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Published: October 27, 2017 5:10:18 PM

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 stock of ICICI Bank had outperformed the key equity indices Sensex and Nifty so far in 2017. (Image: Reuters)

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.

NPAs

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%.

Stock performance

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%.

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