ICICI Bank Q1 net plummets 25% to Rs 2,232 crore

 ICICI Bank reported a 25% decline in standalone net profit for the June quarter at Rs 2,232 crore compared with Rs 2,976 crore in the first quarter of the previous fiscal. The decline was mainly on account of a decline in asset quality and higher provisioning.

Net interest income for the bank improved by 1% during the quarter to Rs 5,159 crore compared with Rs 5,115 crore in the quarter ended June 30, 2015 (Q1-2016).

Provisions during the quarter stood at Rs 2,515 crore compared with Rs 3,326 crore (excluding collective contingency and related reserve) in the quarter ended March 31, 2016 (Q4-2016) and Rs 956 crore in Q1-2016.

Net non-performing assets for the bank as on June 30, 2016 stood at Rs 15,308 crore compared with Rs 13,297 crore on March 31, 2016. The bank’s net non-performing asset ratio was 3.01% on June 30, 2016 compared with 2.67% on March 31, 2016. The bank’s provisioning coverage ratio, including cumulative prudential/ technical write-offs, was 57.1% on June 30, 2016. Net loans to companies whose facilities have been restructured were Rs 7,241 crore on June 30, 2016 compared with Rs 8,573 crore on March 31, 2016.

On a consolidated basis, profit after tax declined by 22.15% to Rs 2,516 crore in Q1-2017 compared with Rs 3,232 crore in Q1 2016. Consolidated assets grew by 14% to Rs 9,39,609 crore as on June 30, 2016 from Rs 8,24,051 crore as on June 30, 2015.

Domestic advances for the bank grew 17% (YoY) with the retail portfolio growing 22% (YoY). Retail portfolio constituted about 46% of the loan portfolio of the bank as on June 30, 2016, compared with 43% as on June 30, 2015. Total advances increased by 12% (YoY) to Rs 4,49,427 crore as on June 30, 2016 from Rs 3,99,738 crore as on June 30, 2015.
 
The bank’s capital adequacy as on June 30, 2016, as per Reserve Bank of India’s guidelines on Basel III norms was 16.22% and tier I capital adequacy was 12.78%. The Basel III capital ratios reported by the bank for June 30, 2016 do not include the profits for Q1 2017. Including the profits for Q1 2017, the capital adequacy ratio for the bank as per Basel III norms would have been 16.45% and the tier I ratio would have been 13.02%, ICICI Bank said.