ICICI Bank Q1 net profit slips 25%

July 30, 2016 - 01:40:30 PM

Despite ICICI bank spooked Dalal Street before of its earnings

on Friday. Higher provisioning for bad loans worth Rs.2,515
crore during the first quarter of the financial (Rs.955 crore in
Q1 FY16) saw ICICI Banks net profit decline 25 per cent Y-o-Y
to Rs.2,232 crore (Rs.2,976 crore in Q1 FY16) on standalone
basis. As a result ICICI Bank share price went down by 3.30 %
and opened with a decrease of 9.70 points.
Net interest income for the quarter increased to 0.8 per cent
Y-o-Y to Rs.5,159 crore. Net interest margin (NIM) reduced 38 basis points to 3.16 per cent. MD
and CEO, ICICI Bank, Chanda Kochhar disclosed that there are doubt in respect of few sectors
because of low commodity prices, gradual nature of domestic recovery and high leverage and
weak global economic environment. The bank has recognized power, mining, iron and steel,
cement and rigs as the important segments in this context. The banks exposure to these
sectors as a percentage of total exposure was reported at 5.4 per cent to power; 4 per cent to
iron and steel; 1.6 per cent to mining; 1.2 per cent to cement; and 0.5 per cent to rigs.

As per Q1 FY17, the bank employed Rs. 865.44 crore from the cumulative contingency and
related reserve of Rs. 3,600 crore, which it developed during the last quarter, towards
exposures to these sectors. The reserve created was more than the provisions it made for nonperforming and restructured loans. The balance sheet size (total assets) on the basis standalone
read at over Rs.7.27-lakh crore, which is up 13 per cent Y-o-Y. ICICI Bank share price is currently
trading at Rs. 262.30.

Deposits saw a rise of 15 per cent to over Rs. 4.24-lakh crore. Among which, low-cost current
account and savings account (CASA) deposits comprised 41.7 per cent, up 60 basis points Y-o-y.
Advances again rose by 12 per cent to over Rs. 4.49-lakh crore. Gross non-performing assets
increased 219 bps to 5.87 per cent on the other hand net NPA hiked 177 basis points to 3.35
per cent. According to Basel-III norms, the banks capital adequacy ratio stood at 16.22 per
cent, down 15 bps.

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ICICI Bank share price history

ICICI Bank share price met its 52 week high on 5th August 15 at Rs. 319.80 while the 52 week
low read at Rs.180.75 on 26th Feb16. For more information on the stock kindly refer to the ICICI
Bank share price history.

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