ICICI Bank Q2 net dips 13% to Rs 2,979 crore on higher bad loans

Mumbai: Country’s largest private sector lender ICICI Bank today reported 12.8 percent dip in consolidated net profit to Rs 2,979 crore for the September quarter as its provisioning for bad loans shot up by 7-fold. The bank’s net profit in July-September quarter of the last fiscal was Rs 3,419 crore. [caption id=“attachment_2602380” align=“alignleft” width=“380”]  Reuters[/caption] Its total income during the second quarter of the current fiscal increased to Rs 32,435 crore, as against Rs 25,138 crore in the year-go period, ICICI Bank said in a statement. However, on standalone basis, the bank reported a marginal 2.3 percent rise in net profit at Rs 3,102 crore for the second quarter as compared to Rs 3,030 crore in the same period of the previous fiscal. Its total standalone income increased to Rs 22,759 crore compared with Rs 16,106 crore on standalone basis in the same quarter of 2015-16. Net interest income remained almost flat at Rs 5,253 crore. ICICI Bank’s gross non-performing assets (NPAs) or bad loans jumped to 6.82 percent as against 3.77 percent at the in the year-ago period. Similarly, net NPAs nearly doubled to 3.57 percent compared with 1.65 percent in the previous fiscal. During the quarter under review, the bank has made provisions (other than tax) and contingencies of Rs 7,083 crore as against Rs 942 crore in the same quarter of the previous fiscal. According to statement, the bank further strengthened its balance sheet by making additional provisions of Rs 3,588 crore which comprised of provisions of Rs 1,678 crore for standard loans and entire loss of Rs 395 crore on sale of NPA during the six months ended September 30 which is permitted to be amortised as per Reserve Bank of India (RBI) guidelines, recognised upfront. Besides, the bank has made a floating provision of Rs 1,515 crore during the period.