Non-interest income falls 39%, ICICI standalone net profit dives 56% to Rs 909 crore

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Mumbai | Published: October 27, 2018 3:28:04 AM

ICICI Bank on Friday reported a 56% year-on-year (y-o-y) fall in its standalone net profit to Rs 909 crore for the September quarter owing to a 39% y-o-y decline in non-interest income to Rs 3,156 crore.

ICICI, ICICI net profit, Non interest income,  NII, Reserve Bank of India, Insolvency and Bankruptcy CodeIn the September quarter of FY18, ICICI Bank had seen its other income boosted by the sale of its stake in ICICI Lombard General Insurance Company, which had resulted in gains of Rs 2,012 crore for the lender. (Reuters)

ICICI Bank on Friday reported a 56% year-on-year (y-o-y) fall in its standalone net profit to Rs 909 crore for the September quarter owing to a 39% y-o-y decline in non-interest income to Rs 3,156 crore. In the September quarter of FY18, ICICI Bank had seen its other income boosted by the sale of its stake in ICICI Lombard General Insurance Company, which had resulted in gains of Rs 2,012 crore for the lender. In Q2FY19, the net interest income (NII) rose 12% y-o-y to Rs 6,418 crore. NII is the difference between interest earned and interest expended. Its net interest margin (NIM) – a key measure of profitability – stood at 3.33%, up 14 basis points (bps) from 3.19% in the previous quarter.

Provisions for the quarter stood at Rs 3,994 crore, down 11% from the same period last year. During Hl-2018, the Reserve Bank of India (RBI) had advised banks to initiate insolvency resolution process under the provisions of Insolvency and Bankruptcy Code 2016 (IBC) for certain specific accounts.

In the notes to accounts, ICICI Bank said on September 30, 2018, it holds a provision of Rs 9,301 crore against its Rs 13,249-crore exposure to accounts named in RBI’s two lists, which amounts to a provision coverage of 70.2%.  The lender also recognised in its profit-and-loss account provisions worth Rs 390 crore against certain fraud and non-performing accounts which had earlier been debited from its reserves and surplus.

Additions to gross non-performing assets (NPA) fell to Rs 3,117 crore in the September quarter from Rs 4,036 crore in the June quarter. The gross NPA ratio at the end of September stood at 8.54%, 27 bps lower than that at the end of June. The net NPA ratio decreased 54 bps sequentially to 3.65%.

Recoveries and upgrades from NPAs were of Rs 1,006 crore. The provision coverage ratio on NPAs, including cumulative technical/prudential write-offs, increased 330 bps sequentially to 69.4%. Total advances at the bank grew 13% y-o-y to `5.44 lakh crore. Retail assets, which constituted 57% of its loan portfolio as on September 30, saw a 20% y-o-y growth.

Total deposits increased by 12% y-o-y to Rs 5.59 lakh crore and the bank’s current account savings account (CASA) ratio stood at 47.1%, down from 50.8% a year ago. CASA deposits increased 15% y-o-y to Rs 2.83 lakh crore. Shares of the lender closed down 1.45% at Rs 315.05 on the BSE. Results were released after market hours.

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