After India’s large private banks such as Axis Bank and Yes Bank reported large divergences in gross NPAs, Chanda Kochhar of ICICI Bank said that the bank did not report any divergence on that front, as the RBI audit is not yet fully complete.
After India’s large private banks such as Axis Bank and Yes Bank reported large divergences in gross NPAs to the tune of Rs 5,633 crore and Rs 6,355 crore respectively, Chanda Kochhar of ICICI Bank said that the bank did not report any divergence on that front, as the RBI audit is not yet fully complete. Notably, the asset quality for the quarter ended 30th September 2017 was far better than its rivals Axis Bank and Yes Bank. Gross non-performing assets (NPA) as a percentage of gross advances came in at 7.87 percent for the quarter, lower compared with 7.99 percent in previous quarter.
ICICI Bank’s second quarter profit fell 33.66 percent year-on-year to Rs 2,058 crore, but there was a big sigh of relief on asset quality and slippages front which came in far better than previous quarters. Profit in the same quarter previous fiscal quarter was Rs 3,102.3 crore. The total income for dipped 17.55% to Rs 18,763.29 crore for the quarter ended 30 September 2017 as compared to Rs 22,759.08 crore in the previous quarter.
Private sector banks have fallen under the RBI scanner, after the apex banks tightened regulations concerning NPAs earlier this year. HDFC Bank too said the Reserve Bank of India has asked it to classify a contentious loan as a non-performing asset (NPA), which had led to a jump in its provisions in September quarter results declared earlier this week.
“The Bank has received communication from the regulator advising it to classify the said account as a non-performing asset. The same has been duly complied with,” HDFC Bank said in a statement adding, “The Bank is in ongoing discussions and correspondence with the regulator in relation to certain observations made on the implementation of the JLF-approved flexible structuring scheme.”