NPA woes continue at ICICI bank, GNPA at 8%

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Updated: July 28, 2017 12:33:51 PM

Growing gross NPAs continue to hurt ICICI bank. According to the latest figures for the Apr-Jun 2017 released yesterday, the total gross NPA stood at Rs 43,148 crore, up by 1.4% on a quarter on quarter basis.

NCLT, ICICI BankThe total Gross NPA stood at Rs 43,148 crore, up by 1.4% on a quarter on quarter basis. (Image: Reuters)

Growing gross NPAs continue to hurt ICICI bank. According to the latest figures for the Apr-Jun 2017 released yesterday, the total gross NPA stood at Rs 43,148 crore, up by 1.4% on a quarter on quarter basis. But, in terms of gross additions to the NPAs the bank saw a major improvement, as the figure of Rs 4,976 crore is the best when compared to the last seven quarters. An account worth Rs 2,775 crores which had previously been categorised as NPA was upgraded to AAA category after successful sale of the borrower’s cement business. The bank has a gross NPA ratio of nearly 8%, 3% higher than Axis bank, revealing that the bank’s struggle against mounting NPAs is far from over.  “Net loans to companies whose facilities have been restructured were Rs 2,370 crore at June 2017, down 44.4 percent compared with Rs 4,265 crore at March 2017,” the private sector lender said, adding there was no sale of NPAs to asset reconstruction companies during the quarter.

In relation to the IBC (Insolvency and Bankruptcy Code), wherein the RBI had advised banks to initiate insolvency resolution process in respect of 12 accounts and also required banks to make higher provisions for these accounts during the year, the private sector lender said that the bank had exposure to nine borrowers amounting to Rs 6,889 crores. Out of the total outstanding, 97% was secured as at June 2017 as per the bank.

The bank had unreported under-reported gross non-performing assets (NPAs) in FY16 to the tune of Rs 5,104.61 crore. According to its FY17 annual report, while the bank reported gross NPAs of Rs26,221.25 crore in FY16, the Reserve Bank of India’s (RBI) supervision had found the gross NPAs to be at Rs 31,325.86 crore in the same period. “The impact of changes in classification and provisioning arising out of the RBI’s supervisory process for the year ended March 31, 2016, has been fully given effect to in the audited financial statements for the year ended March 31, 2017,” the bank had said in the annual report earlier.

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