ICICI Bank reports 45 per cent drop in consolidated net profit

ICICI Bank Q4 earnings today profit seen taking a hit

ICICI Bank Q4 earnings today profit seen taking a hit

The bank's standalone net profit plummeted by 50 per cent to Rs 1,020 crore in the fourth quarter as against Rs 2024 crore in the same period of a year ago as provisions for bad assets shot up to Rs 6,625 crore as against Rs 2,898 crore previously. She also stated there was no discussion on the controversy in the Board meeting today.

ICICI Bank Ltd, India's third-largest lender by assets, said its fourth-quarter net profit nearly halved, missing expectations, as provisions for bad loans surged.

The share of retail loans will be increased to more than 60% by March 2020.

However, standalone total income of the bank rose to Rs 19,943 crore in March quarter, from Rs 16,585.76 crore in preceding fiscal's last quarter, the bank said in a statement.

It was other income, which grew to Rs 5,678 crore from Rs 3,017 crore past year, thanks to the Rs 3,300- crore it netted from stake sale in the broking arm, that helped the bank's bottomline. Moreover, the numbers will be go up against because of the Central Bureau of Investigation (CBI) registering a preliminary enquiry (PE) against ICICI Bank Managing Director (MD) and Chief Executive Officer (CEO) Chanda Kochhar's husband Deepak Kochhar, officials of the Videocon group and others to determine there has been malpractices involving the sanctioning of Rs 32.5 billion loan to the Videocon Group by the ICICI Bank as part of a consortium of banks in 2012.

However, ICICI Bank's net interest income inched up to Rs 6,022 crore in the quarter ended March 31, 2018 from Rs 5,962 crore earned in the period ended March 31, 2017.

ICICI Bank surprisingly recorded provisions of Rs 6,625.75 crore in Q4FY18, surging by a whopping 128.61% as against Rs 2,898.22 crore a year ago same period.

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"During Q4-2018, the gross additions to NPA were Rs 15,737 crore in Q4-2018".

Similarly, the percentage of gross NPAs rose to 8.84 per cent of assets from 7.89 per cent past year and 7.82 per cent on a sequential basis.

The Board has recommended a dividend of ' 1.50 per share (equivalent to dividend of US$ 0.046 per ADS).

The private lender's income from operations in the fourth quarter stood at Rs 33,760 crore, up 18 per cent, compared from Rs 28,603 crore in the same period past year.

The surge in bad assets restricted core income growth and net interest income was up marginally at Rs 6,022 crore despite a widening of margins to 3.24 per cent and a 15 per cent domestic loan growth. This includes Rs 9,968 crore (US$ 1.5 billion) of loans which were under RBI schemes and were classified as standard at December 31, 2017.

It also envisages maintaining the average CASA (current account and saving account deposit) ratio of 45 per cent to total deposits and a new approach to corporate lending.

The ICICI Bank stock had a good trading session on Monday as the scrip rose 2.30 per cent on BSE.

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