ICICI Bank reports 45 per cent drop in consolidated net profit

  • ICICI Bank reports 45 per cent drop in consolidated net profit

ICICI Bank reports 45 per cent drop in consolidated net profit

"The board has made its stand clear... and we don't have anything more to add", Kochhar said when reporters repeatedly asked her about the silence maintained by her as well as the bank at a conference call with journalists and later at an interaction with television channels. While officially the meeting's agenda is "strategy", the issue that is likely to be discussed is the controversy surrounding Rs 3,250-crore loan to the Videocon group.

Kochhar also announced a new strategy revolving around "preserve, change and grow" with targets for March 2020 on various parameters.

ICICI Bank is likely to report a drop in its fiscal fourth-quarter because of higher scope for bad loans.

On February 12, RBI issued a revised framework for resolution of stressed asset superseding its earlier guidelines, leading to accretion of NPAs.

"During Q4-2018, the gross additions to NPA were Rs 15,737 crore in Q4-2018". Also, there was no clarity over the alleged Rs 64- crore loan (unsecured fully convertible debentures) given to NuPower by Supreme Energy, which was 99.99 per cent owned by Videocon group chief Venugopal Dhoot at that time.

Similarly, the percentage of gross NPAs rose to 8.84 per cent of assets from 7.89 per cent past year and 7.82 per cent on a sequential basis.

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. "And I think the board has already clarified", she said.

On the credit expansion, the statement said, the year-on-year growth in domestic advances was 15 per cent on March 31, 2018. On a year-to-date basis, the stock has dropped by 9 percent and has underperformed the Nifty Bank index that earned almost 1 percent in this period, ACE Equity data shows.

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.

ICICI Bank has been in the spotlight in the last couple of months, after a whistle blower investor alleged conflict of interest in the lender giving loans to the Videocon Group.

Without naming the borrowers, she said the bank classified three accounts with an exposure of Rs 794 crore in the gems & jewellery sector as fraud during the quarter and Rs 289 crore has been provided against those.

"The board recommended a dividend of Rs 1.50 per share (equivalent to dividend of Dollars 0.046 per ADS) for face value of Rs 2".

The ICICI Bank stock had a good trading session on Monday as the scrip rose 2.30 per cent on BSE.

The private lender's income from operations in the fourth quarter stood at Rs 33,760 crore, up 18 per cent, compared from Rs 28,603 crore in the same period past year.

However, standalone total income of the bank rose to Rs 19,943 crore in March quarter, from Rs 16,585.76 crore in preceding fiscal's last quarter.