ICICI Bank reported an 8 per cent dip in standalone net profit at ₹2,049 crore in the first quarter ended June 30, 2017, compared with ₹2,232 crore in the year-ago period on account of continued provisioning pressure due to bad loans and lower non-interest income.

A deferred tax adjustment (income tax refund) of ₹302 crore in the reporting quarter helped lessen the blow to profitability. In the year-ago quarter, DTA was at ₹22 crore.

Net interest income increased 8 per cent to ₹5,590 crore (₹5,159 crore).

Non-interest income was lower at ₹3,388 crore (₹3,429 crore).

Chanda Kochhar, MD & CEO, explained that the dip in profit was on account of the fact that exchange rate gain related to overseas operations, which was available in the year-ago quarter, was no longer permitted to be accounted for as income from the reporting quarter and ICICI Prudential Life had moved to dividend payments on half-yearly basis from quarterly basis.

Total advances nudged up 3 per cent to ₹4,64,075 crore.The growth in total advances comes solely on the back of domestic advances growth, which was up 11 per cent y-o-y. Overseas advances declined 22 per cent y-o-y.

Within the domestic advances, retail and small & medium enterprise advances were up 18.6 per cent and 18.4 per cent respectively, corporate advances declined 2.8 per cent.

Total deposits increased 15 per cent to ₹4,86,254 crore.The composition of low-cost current account, savings account (CASA) deposits in overall deposits improved to 49 per cent (45.1 per cent). Net interest margin edged up 3.27 per cent (3.16 per cent).

Gross non-performing assets (net of write-offs) jumped to ₹43,148 crore (₹27,563 crore). GNPAs as a percentage of gross assets rose to 7.99 per cent (5.28 per cent). Provisions towards bad loans were at ₹2,609 crore (₹2,515 crore).

Kochhar said gross additions to NPAs at ₹4,976 crore in the June quarter were the lowest in the last seven quarters. Further, in the reporting quarter, recoveries and upgrades of ₹2,775 crore reflected completion of the sale of cement business of a borrower, which was classified as NPA in the preceding quarter. Net addition to gross NPA was at ₹2,201 crore.

Stressed accounts On the bank’s exposure to 12 large stressed accounts, against whom the RBI wanted banks to initiate insolvency resolution process, the ICICI chief said her bank had exposure to nine of the accounts amounting to ₹6,889 crore (excluding non-fund outstanding amount of ₹351 crore).

As of June-end 2017, the bank held a provision of ₹2,828 crore against these outstanding loans, which amounted to 41 per cent provision coverage. The bank is required to make an additional provision of ₹647 crore over the next three quarters as advised by the RBI.

Kochhar said NPA accretion in the current financial year would be less vis-a-vis the previous financial year.

The bank’s consolidated net profit edged up 3.5 per cent to ₹2,605 crore (₹2,516 crore). The consolidated net profit includes the financial performance of ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company, ICICI Prudential AMC, and ICICI Securities.

On Thursday, ICICI Bank shares closed at ₹307.05 apiece, down 1.02 per cent over the previous close, on the BSE.

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