ICICI Bank Q3 net profit slips as bad loans surge

Mumbai: Country’s largest private sector lender ICICI Bank today reported 4.3 per cent decline in net profit to Rs 3,122 crore for the quarter ended December 31 on account of rising bad loans. The bank had posted a consolidated net profit of Rs 3,265.32 crore for the October-December quarter of last fiscal. [caption id=“attachment_2602380” align=“alignleft” width=“380”]  Reuters[/caption] On a standalone basis, the bank’s net profit rose 4 per cent to Rs 3,018 crore during the third quarter of 2015-16 from Rs 2,889 crore during the same period of 2014-15. Its total income on standalone basis during the quarter under review increased to Rs 17,562.95 crore, from Rs 15,526.88 crore in the year-ago period, ICICI Bank said in a statement. The total income of the bank on consolidated basis increased to Rs 25,585.14 crore, from Rs 23,053.82 crore in the year-ago period. As on December 31, ICICI Bank’s gross non-performing assets (NPAs) rose to 4.72 per cent of gross advances as against 3.40 per cent in the same quarter of the previous fiscal. It’s net non-performing assets also rose to 2.28 per cent from 1.90 per cent during the period under review. Net non-performing assets at December 31, 2015 were Rs 10,014 crore compared to Rs 6,828 crore at September 30, 2015, it said. “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,” it said. Provisioning for bad loans and contingencies rose sharply to Rs 2,844.05 crore in third quarter of 2015-16 as compared to Rs 979.69 crore in the same period of the last fiscal. For the first nine months of 2015-16, the bank’s standalone net profit rose by 9 per cent to Rs 9,024 crore as compared to Rs 8,253 crore in the same period of the previous fiscal. It reported total income of Rs 49,471.62 crore in the first three quarters, as against Rs 45,032.54 crore in the same period of last financial year. PTI