ICICI Bank Q3 net profit up 4%

ICICI Bank Q3 net profit up 4%

Owing to a decline in asset quality

ICICI Bank Q3 net profit up 4%

ICICI Bank reported a four per cent increase in standalone net profit for the third quarter ended December 31, 2015, at Rs 3,018 crore, compared with Rs 2,889 crore for the quarter ended December 31, 2014, due to a decline in asset quality, as well as rise in provisions.

Net interest income for the bank increased by 13 per cent to Rs 5,453 crore in Q3FY16, from Rs 4,812 crore in Q3FY15. Provisions for the bank were at Rs 2,844 crore during the quarter, compared with Rs 942 crore in Q2FY16, and Rs 980 crore in FY15.

Net non-performing assets (NPAs)  for the quarter ended December 31, 2015 were at Rs 10,014 crore, compared with Rs 6,828 crore on September 30, 2015.

The increase in non-performing assets was primarily due to the decline and continuing weakness in the global steel cycle; and RBI’s objective of early and conservative recognition of stress and provisioning, pursuant to which RBI has asked banks to review certain loan accounts and their classification over the two quarters ending December 31, 2015, and March 31, 2016, the bank said. The bank’s net NPAs ratio was 2.03 per cent at December 31, 2015, compared with 1.47 per cent at September 30, 2015.

Domestic advances for the bank grew 20 per cent at December 31, 2015 (YoY). The bank continued to see robust growth in its retail business resulting in a year-on-year growth of 24 per cent in the retail portfolio at December 31, 2015. The retail portfolio constituted about 44 per cent of the loan portfolio of the bank at December 31, 2015. Total advances increased by 16 per cent (YoY) to Rs 4,34,800 crore at December 31, 2015, from Rs 3,75,345 crore at December 31, 2014.

As far as insurance subsidiaries are concerned, ICICI Life achieved a profit after tax of Rs 436 crore for the quarter compared to Rs 462 crore an year ago. Gross written premium of ICICI General increased by 21 per cent from Rs 1708 crore in Q3FY15 to Rs 2,072 crore in Q3FY16.

Profit after tax of ICICI General during the quarter stood at Rs 130 crore compared to Rs 176 crore in the same quarter last fiscal and Rs 143 crore in the sequential quarter (Q2FY16).

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)