ICICI Bank Q3 FY18 result: Net profit plunges 27% on-year to Rs 1,894 crore as bad loans worsen

By: |
Published: January 31, 2018 6:13:16 PM

India's third-largest bank by assets ICICI Bank reported a plunge of 27.45% on a yearly basis in the consolidated net profit to Rs 1,894.15 crore for the quarter ended 31 December 2017 on Wednesday due to higher provisioning as the bad loans of the private sector lender increased.

The gross NPAs of ICICI Bank worsened to 7.82% of the gross advances as on 31 December 2017 as compared to 7.2% as on 31 December 2016. (Image: Reuters)

India’s third-largest bank by assets ICICI Bank reported a plunge of 27.45% on a yearly basis in the consolidated net profit to Rs 1,894.15 crore for the quarter ended 31 December 2017 on Wednesday due to higher provisioning as the bad loans of the private sector lender increased. ICICI Bank posted a standalone net profit of Rs 2,611.83 crore in the October-December period of the financial year 2016-2017. The total income of ICICI Bank rose marginally to Rs 28,501 crore during the October-December period of the financial year 2017-2018 as compared to Rs 27,876 crore in the corresponding period a year earlier.

Key things in pointers

  1. The net interest income grew by 6% year-on-year to Rs 5,705 crore in the quarter ended December 31, 2017, as compared to Rs 5,363 crore in the quarter ended December 31, 2016.
  2. The domestic net interest margin was 3.53% and the overall net interest margin was 3.14% in third-quarter of FY18.
  3. The non-interest income was Rs 3,167 crore in third-quarter of FY18 compared to Rs 3,939 crore in third-quarter FY17. In Q3-2017, non-interest income included Rs 893 crore of treasury gains due to increase in liquidity & decline in yields following demonetisation, and Rs 82 crore of exchange rate gains relating to overseas operations (subsequently reversed in fourth-quarter of FY17 as RBI disallowed recognition of such gains in the P&L account).
  4. The core operating profit, excluding treasury income and exchange rate gains relating to overseas operations, increased by 10% year-on-year to Rs 4,992 crore in October-December period of FY18 as compared to Rs 4,549 crore in the comparable quarter last year.
  5. The standalone net profit saw a decline of 32% to Rs 1,650 crore for third-quarter ended 31 December 2017 as against Rs 2,442 crore in the corresponding period last year.
  6. CASA (current and savings account) ratio at 50.4% at 31 December 2017.

On the assets front, the gross NPAs (non-performing assets) of ICICI Bank worsened to 7.82% of the gross advances as on 31 December 2017 as compared to 7.2% as on 31 December 2016. The net NPAs also increased to 4.2% of the net advances at end of 31 December from 3.96% by the same period year earlier. In the absolute terms, the gross NPAs spiked to Rs 46,038.7 crore as at the end of 31 December 2017 vs Rs 38,084.97 crore as at the end of 31 December 2016 while net NPAs rose to Rs 23,810.25 crore at the end of Q3 FY18 as against Rs 20,154.88 crore in the comparable quarter last year. The provisions and contingencies for bad loans increased to Rs 3,569.56 crore for December quarter of FY18, up by 31% from Rs 2,712.7 crore in the same span a year earlier.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1RBI’s loan moratorium may spell trouble for NBFCs looking for funds, as investors’ trust weakens
2Debt downgrades can push India bank fund raising to $20 billion
3Kotak Mahindra Bank set to raise Rs 7,460 crore through share sale