Weighed down by provisions towards loans, ICICI Bank has reported only a marginal increase in July-September 2016 standalone net profit at Rs 3,102 crore against Rs 3,030 crore in the year-ago quarter.
The bank got the benefit of higher deferred tax adjustment (DTA) of Rs 1,247 crore and this helped prop up its profitability. DTA in the year-ago period was Rs 214 crore.
India’s largest private sector bank by consolidated assets reported a flat net interest income of Rs 5,253 crore (Rs 5,251 crore in the year-ago period).
Non-interest income, however, jumped to Rs 9,120 crore compared with Rs 3,007 crore in the year-ago quarter. The jump was mainly on account of gains of Rs 5,682 crore relating to the bank selling approximately 12.63 per cent shareholding in the IPO of ICICI Prudential Life Insurance Company.
The bank said it further strengthened its balance sheet by making additional provisions of Rs 3,588 crore, which comprises provisions of Rs 1,678 crore for standard loans, entire loss of Rs 395 crore on sale of NPA during the six months ended September 30, 2016 (H12017), and floating provision of Rs 1,515 crore.
Other provisions were Rs 3,495 crore in Q2 2017 compared with Rs 942 crore in Q2 2016.
Gross non-performing assets (GNPAs) stood at Rs 32,179 crore as of September-end 2016 against Rs 15,858 crore as of September-end 2015.
GNPAs as a percentage of gross advances deteriorated to 6.82 per cent from 3.77 per cent.