Mumbai, January 31: The net profit of ICICI for the December ended quarter even missed estimates, even as asset quality remained stable. ICICI, which is India’s second largest private bank said in an exchange filing that its profit fell 32.4 per cent to Rs 1,650 crore over the last year. Also Read - ICICI Bank Joins Hands with Google Pay for Issuing FASTag
The figure is lower than the Rs 1,903 crore estimated by Bloomberg analysts. The bottom line declined on a higher base in the comparable quarter last year when an other income of Rs 900 crore from treasury operations and Rs 82 crore from exchange rate gains has boosted profit, Chanda Kochar, ICICI’s Managing Director said in the conference. Also Read - ICICI Bank Launches 'iMobile Pay' App Making Official Entry to the 'FinTech' Space
Core income of the bank, or the net interest income, rose 7.2 per cent to Rs 5,705 crore year-on-year. This compares to the 5,862 crores estimated. Also, the net interest margin remained flat at 3.3 per cent on a quarter-on-quarter basis. Also Read - ICICI Bank, L&T Chosen as Top Muhurat Session Picks
The asset quality of ICICI remained stable this quarter. Gross non-performing asset ratio declined marginally to 7.82 per cent from 7.87 per cent in the last quarter. The gross additions to non-performing assets stood at Rs 4,380 crore during the quarter, the lowest addition to gross NPA in nine quarters.
Net bad loan ratio also declined to 4.20 per cent from Rs 4.43 per cent.
This quarter the private lender’s provisioning coverage ratio improved by 160 basis points to 6.9 per cent. The banks said that it has an exposure of Rs 10,061 crore to 18 accounts named in the Reserve Bank of India’s second list of stressed assets that may face insolvency proceedings.
Provisions declined sequentially to Rs 3,570 crore from Rs 4,503 crore on a quarterly basis.
While most private sector banks revealed their bad loan divergences in the last quarter, ICICI Bank said, RBI observations do not require any disclosure from the bank after reviewing the account.
“RBI assessment concluded during the quarter. Observations do not require any disclosure from the bank”, Chanda Kochhar said to media.