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Private sector lender ICICI Bank net profit fell 2.74 per cent during the third quarter of the fiscal with higher provisions despite a strong growth in net interest income.
Its net profit stood at ₹1,604.91 crore in the quarter ended December 31, 2018 as compared to ₹1,650.24 crore in the third quarter last fiscal. However, on a sequential basis, its net profit has shown a marked improvement from ₹908.88 crore in the second quarter this fiscal and a loss of ₹120 crore in the first quarter.
Its total income rose 19.78 per cent in December quarter to ₹20,163.25 crore from ₹16,832.22 crore a year ago.
Net interest income up
Net interest income increased by 21 per cent to ₹6,875 crore in the quarter under review from ₹5,705 crore a year ago.
Its net interest margin also improved to 3.4 per cent in the third quarter of the fiscal from 3.33 per cent in the second quarter.
Non-interest income, excluding treasury income, was ₹3,404 crore during the quarter compared to ₹3,101 crore. Provisions rose 18.9 per cent to ₹4,244 crore from ₹3,570 crore.
“The provision coverage ratio on non-performing loans, including cumulative technical/prudential write-offs, increased by 690 basis points sequentially to 76.3 per cent at December 31, 2018, further strengthening the balance sheet,” ICICI Bank said.
However, its gross non-performing assets remained high at 8.54 per cent of gross advances as on December 31, 2018 compared to 9.3 per cent on September 30, 2018 and 8.55 per cent on December 31, 2017.
Gross NPAs
ICICI Bank, however, said that gross NPA additions were the lowest in last 14 quarters at ₹2,091 crore in the quarter under review.
Net NPAs were, however, lower at 2.87 per cent of net advances as on December 31, 2018 compared to 4.64 per cent a year ago. Recoveries, upgrades and resolution of non-performing loans through sale were ₹4,063 crore in the period, including ₹720 crore on account of the impact of rupee appreciation on existing foreign currency NPAs.
The lender’s scrip gained 5.29 per cent on the BSE and closed at ₹365.25 apiece.
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