However, compared to the June quarter (Q1FY18) figure 7.99 per cent, it was a slight improvement. The slippages (loans turning bad) also fell to Rs 4,974 crore, down from Rs 4,976 crore in Q1 and Rs 8,029 crore in year ago period.While the results came after market hours with no negative surprises packed in, investors seem to be happy. ICICI Bank’s American Depository Receipts listed on the NYSE was up 1.5 per cent, at 8 pm IST. The provision coverage ratio (PCR) was 59.3 per cent in September 2017, marginally down from 59.6 per cent in September last year, but higher by 410 basis points over the quarter ended June 2017. The bank has made a provision of Rs 651.17 crore for the 12 accounts referred to National Company Law Tribunal (NCLT). While bank had option to spread provisions burden over three quarters, it decided to make one-time provision in second quarter its self. It has also made a provision of Rs 3,298 crore for the second consortium list, which works out to a provision coverage of 31.5 per cent of outstanding loans amount of Rs 10,337 crore. Asked about the Reserve Bank of India's annual audit for FY17, Kochhar said, “We still await the final report from RBI. The inspection process is still going on.” The outcome of the RBI assessment will be out in the December quarter for ICICI Bank. This has become crucial as banking regulator had asked many banks such as YES Bank, Axis Bank and Lakshmi Vilas Bank to restate their NPAs numbers for FY17 to reflect the divergence in estimates between those of banks and the RBI. ICICI Bank's total advances increased by 6 per cent year-on-year to Rs 4,82,780 crore at September 30, 2017. Domestic advances grew by 13 per cent backed by 19 per cent expansion in retail loans portfolio. The domestic loan growth is expected to be about 15 per cent for FY18, Kochhar added. Total deposits increased by 11 per cent year-on-year to Rs 4,98,643 crore for the quarter. Current and Savings Accounts (CASA) deposits increased by 20 per cent year-on-year to Rs 2,46,876 crore in September quarter, bringing the bank’s CASA ratio to 49.5 per cent. The bank’s total Capital Adequacy Ratio (CAR) was at 17.89 per cent and Tier-I CAR was at 14.85 per cent as on September 30, 2017.
ICICI Bank Q2 net falls 34% to Rs 2,058 cr but bad loans stabilise
Gross bad loans as a percentage of total loans stood at 7.87% versus 7.99% q-o-q
Nikhat Hetavkar |