Published: Tue, May 08, 2018
Business | By Pearl Harrison

ICICI group net plunges 45% as fresh slippages, provisions soar

ICICI group net plunges 45% as fresh slippages, provisions soar

The bank's net profit came at Rs 1,141.93 crore, down from Rs 2,082.75 crore in the same quarter past year.

The board of directors of ICICI Bank did not discuss the controversy arising from ICICI Bank's loan to the Videocon group.

ICICI Bank reported its smallest quarterly profit in two years on Monday as stricter RBI rules forced the country's third-biggest lender by assets to account for more bad loans.

The share of retail loans will be increased to more than 60% by March 2020.

However, ICICI Bank's slippages rose almost four times to Rs 15,737 crore as compared to Rs 4,380 crore in the third quarter of FY18.

However, that hasn't stopped the Prime Minister's Office (PMO) from ordering the Central Bureau of Investigation (CBI) and the Income Tax Department (IT-D) to probe transactions involving Chanda Kochhar's husband Deepak's firm NuPower Renewables, Videocon Industries and other related parties in connection with a Rs 3,250 crore ICICI loan given to the Videocon group in 2012.

The results come against the backdrop of a series of allegations of impropriety in ICICI Banks extending loans to some companies and enjoying reciprocal benefits by the family members of the lenders CEO Chanda Kochhar.

ICICI Bank is seen reporting a drop in its fiscal fourth quarter profitability because of higher provisioning for bad loans.

For the period FY18, standalone profit stood at Rs 6,777.42 crore, shockingly declining by 30.85% in comparison with previous fiscal FY17 income were it was at Rs 9,801.09 crore.

Gross bad loans as a percentage of total loans was 8.84 per cent at the end of March, compared with 7.82 per cent at the end of the previous quarter and 7.89 per cent a year earlier.


Net NPA, however, marginally declined to 4.77 per cent from 4.89 per cent.

The bank however, saw a gain of 18 per cent as far as total income is concerned with stood at Rs 33,760.07 crore.

The company's Board has recommended a dividend of Rs 1.50 per share saying that the declaration of dividend is subject to requisite approvals. Today's board meeting was not attended by the government nominee on the bank's board- Lok Ranjan.

On the credit expansion, the statement said, the year-on-year growth in domestic advances was 15 per cent on March 31, 2018.

While retail book, which now contributes 57 per cent of the loan book, grew 20 per cent, corporate book was subdued at 5 per cent.

The bank is targeting to bring down net NPA to 1.5 per cent and take the provision coverage ratio to 70 per cent by March 2020.

In absolute terms, gross NPAs jumped to Rs 54,063 crore, up from 46,039 crore in December quarter.

The ICICI Bank Board will also meet tomorrow on May 8.

At the same time the low cost CASA (current account savings account) deposits increased by 17 per cent to Rs 2,89,925 crore during the fiscal.

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