ICICI Bank, country’s largest private lender, on Friday announced its fourth quarter results and said that its net profit fell 76 per cent to stand at Rs 702 cr as against 3,018 crore in the last quarter due to huge provisioning on bad loans.
Gross NPAs of the bank stood at 5.82 per cent against 4.72 per cent in the previous quarter. The company had net NPAs at 2.98 per cent in the reported quarter as against 2.28 per cent in the previous quarter. The net NPAs stood at Rs 12,960 crore against Rs 9907 crore in the previous crore.
Total income of the bank increased from Rs 16234.73 cr for the quarter ended March 31, 2015 to Rs 18,590.86 cr for the March 2016 quarter.
The bank has huge NPAs slippage of around Rs 7,000 cr in Q4, added to Rs 6,500 crore in the previous quarter.
The gross NPAs was at Rs 26,222 cr in Q4 as 21,149 cr in the last quarter.
The board has also cleared a dividend of Rs 5 per equity share of face value of Rs 2 and a dividend of Rs 100 per preference share on 350 preference shares of face value of Rs 1 cr each.
ICICI Bank MD and CEO Chanda Kochchar however said the bank had a healthy overall capital adequacy ratio of 16.64 per cent with tier I capital adequacy of 13.09 per cent.
The RBI’s asset quality review has been completed by the bank and on account of that Rs 2,700 crore of restructure assets slipped into NPAs during the quarter. Among the sectors that gave problem to the bank were iron and steel, mining and power. ICICI sold stressed assets worth Rs 700 cr to asset reconstruction company in the quarter.
“We expect a loan portfolio growth of 18 per cent during the year with retail growth to be in the range of 25 per cent,” Kochchar said.
The bank also said that board has cleared a proposal for an IPO by its insurance arm ICICI Life.
Shares of the bank were trading 1.23 per cent down at Rs 237.20 (12.32 pm).