ICICI Bank Q1 net profit dips 8%

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Mumbai: The Private lender ICICI Bank Ltd posted 8.2% decrease in net profit in April-June quarter ended because of raise in bad loans and slower credit expansion opposed a reduction in the pace of accretion of assets. Net profit in the June quarter down to Rs2,049 crore from Rs2,232.35 crore a year before period. Its consolidated net profit grew to Rs2,605 crore from Rs2,516 crore in the similar period.

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Bad loans grew to Rs 43,147.64 crore, an augment of 1.4% from three months before. The bank in June quarter added Rs4,957 crore to its non-performing asset (NPA) stock. NPAs made up 8.84% of ICICI Bank’s total loans, contrast with 8.74% in March.

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The provisions and contingencies reduced 10% to Rs2,608.7 crore throughout the June quarter from Rs2,898.22 crore in the March quarter. Provisions rose 3.74% YoY from Rs2,514.52 crore a year before period. Loan recoveries and upgrades in June quarter worth Rs2,775 crore, largely on account of reclassification exposure to Jaiprakash Associates Ltd following the corporation sold its cement assets to UltraTech Cement Ltd and paid creditors.

Chief executive officer Chanda Kochhar conveyed that the bank had been selective in lending to corporate entities and was rising its retail loans earlier. The bank said it had exceptional advances of Rs6,889.46 crore and non-support introduction of Rs351 crore to nine out of 12 accounts the Reserve Bank of India has requested that banks allude to the National Company Law Tribunal for starting indebtedness procedures.

The administration cleared up that the bank had put aside Rs2,828 crore to cover the danger of default by these borrowers. The rest of the provisioning of Rs650 crore against these records will made throughout the following seventy five percent. Advances remained to a great extent unaltered at Rs4.64 trillion from a quarter back. While ICICI Bank’s local advance book developed by 10.9%, with retail credits expanding 19%, its universal advance book fell by 20%.

ITC net profit up 7.4% to Rs 2,560 cr in April-June

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