ICICI Bank’s net profit declined 19 per cent in the third quarter ended December 31, 2016, to ₹2,442 crore as against ₹3,018 crore in the year-ago period due to increase in bad loans.

Net interest income in Q3 decreased 1.7 per cent to ₹5,363 crore while net interest margin fell 41 basis points (bps) year-on-year to 3.12 per cent.

Gross non-performing assets (NPAs) rose to ₹37,717 crore (7.91 per cent of gross advances) from ₹21,149 crore (4.72 per cent ) in December 2015.

Net NPAs during the same period rose to 4.35 per cent from 2.28 per cent.

Chanda Kochhar, MD and CEO, ICICI Bank, said: “About 75 per cent of the gross additions to NPAs for the wholesale and SME businesses in Q3 FY17 were on account of slippages relating to companies internally rated (as) below investment grade in key sectors, restructured portfolio and devolvement of non-fund facilities of accounts classified as non-performing in prior periods.”

Advances grew 5.2 per cent y-o-y to over ₹4.57 lakh crore in Q3 FY17 (over ₹4.34 lakh crore in Q3 FY16) due to a robust increase of 17.8 per cent in its retail lending portfolio.

The share of retail loans in its overall loan book increased to 48.9 per cent from 43.8 per cent in the year-ago quarter.

Buoyed by demonetisation, deposits saw a strong increase of 14.2 per cent to over ₹4.65 lakh crore and, as a result, CASA ratio (the ratio of low-cost deposits to total deposits) rose 470 bps to 49.9 per cent.

The capital adequacy ratio as per Basel-III norms increased 21 bps to 15.98 per cent.

The bank had 4,504 branches and 14,146 ATMs as on December 31, 2016.

On consolidated basis, ICICI Bank’s net profit fell to ₹2,611 crore in Q3 FY17 (₹3,122 crore in Q3 FY16) despite total income rising to ₹27,876 crore from ₹25,585 crore in the year-ago quarter.

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