MUMBAI, Jul 27: Improvement in asset quality led ICICI Bank to report a consolidated net profit of Rs 2,513.69 crore for the June quarter on Saturday, against Rs 4.93 crore profit in the year-ago period.
On a standalone basis, the second largest private sector bank by assets reported a net profit of Rs 1,908 crore against a Rs 119 crore loss for June 2018.
The bank’s core net interest income grew 26.8 per cent to Rs 7,737 crore on expansion in net interest margin to 3.61 per cent from 3.19 per cent in the year-ago period and an 18 per cent credit growth fuelled by retail segment’s 22 per cent expansion.
On a conference call, the bank management consisting of executive director-designate Sandeep Batra and group chief financial officer Rakesh Jha said expansion in NIM was due to higher quantum of interest-paying assets as non-performing assets reduced and also write-backs on taxation front.
Refraining from giving any guidance, they said the bank will pass on benefits of dip in rates to borrowers which shall aid transmission.
The bank added Rs 2,779 crore to gross non-performing assets during the quarter, compared to Rs 3,547 crore in the year-ago period. The retail sector additions at Rs 1,511 crore were higher than the corporate and SME segment’s Rs 1,268 crore.
Over Rs 452 crore of the slippages came from Kisan credit card portfolio, the bank disclosed. This echoes with its larger rival HDFC Bank also reporting increased stress on the agri side.
The ICICI Bank management said the portfolio on retail is “stable” as of now and added that even the unsecured book, which now constitutes 8 per cent of the overall loan book, is growing on the back of existing customer base itself.
On the corporate side, the bank said the overall quantum of portfolio rated BB and below reduced to Rs 15,355 crore as of June from the over Rs 17,000 crore in April on slippage into NPAs and upgrades. The bank wrote off Rs 2,200 crore of NPAs during the quarter.
To a question on frequently talked about accounts in the NBFCs and media space, the bank management said it has some exposure which is “not material” in nature. It has not set aside any money proactively against such accounts.
Its overall provisions reduced to Rs 3,495 crore as against Rs 5,971 crore in the year-ago period. To a question on credit costs, the bank management indicated that it will be in the 1.2-1.3 per cent range. (PTI)
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