Higher provisioning for bad loans at ₹2,515 crore during the first quarter of this fiscal (₹955 crore in Q1 FY16) saw ICICI Bank’s net profit decline 25 per cent year-on-year to ₹2,232 crore (₹2,976 crore in Q1 FY16) on standalone basis.

Net interest income for the quarter rose 0.8 per cent year-on-year to ₹5,159 crore. Net interest margin (NIM) declined 38 basis points to 3.16 per cent.

Chanda Kochhar, MD and CEO, ICICI Bank, said: “There are uncertainties in respect of certain sectors due to weak global economic environment, low commodity prices, gradual nature of domestic recovery and high leverage.” The bank has identified power, iron and steel, mining, cement and rigs as the key sectors in this context. The bank’s exposure to these sectors as a percentage of total exposure stood 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. During Q1 FY17, the bank utilised ₹865.44 crore from the collective contingency and related reserve of ₹3,600 crore, which it created during the last quarter, towards exposures to these sectors. The reserve created was over and above the provisions it made for non-performing and restructured loans.

The balance sheet size (total assets) on standalone basis stood at over ₹7.27-lakh crore, up 13 per cent y-o-y.

Deposits grew 15 per cent to over ₹4.24-lakh crore. Of this, low-cost current account and savings account (CASA) deposits constituted 41.7 per cent, up 60 basis points y-o-y. Advances grew 12 per cent to over ₹4.49-lakh crore.

Gross non-performing assets rose 219 bps to 5.87 per cent while net NPA increased 177 basis points to 3.35 per cent.

The bank’s capital adequacy ratio according to Basel-III norms stood at 16.22 per cent, down 15 bps.

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