ICICI Bank Q3 net up 4.5% at Rs3,018 cr; bad loans rise to 2.28%

ICICI Bank Ltd, the country's biggest private sector lender by assets, has reported a 4.5 per cent year-on-year increase in its fiscal third quarter net profit at Rs3,018 crore ($443 million) amidst a spike in bad loans in the quarter.

The increase in bad loans comes after a central bank order to reclassify some troubled loan accounts, and ICICI Bank expects a further increase in bad assets this quarter.

"The increase in non-performing assets was primarily due to the decline and continuing weakness in the global steel cycle; and RBI's objective of early and conservative recognition of stress and provisioning, pursuant to which RBI has asked banks to review certain loan accounts and their classification over the two quarters ending December 31, 2015 and March 31, 2016," the bank said.

On a standalone basis, the bank's net profit rose 4 per cent to Rs3,018 crore during the third quarter of 2015-16 from Rs2,889 crore during the same period of 2014-15.

The lender, which is also listed in New York, reported a consolidated net profit of Rs3,265.32 crore for the October-December quarter of the previous fiscal.

Its total income on standalone basis during the quarter under increased to Rs17,562.95 crore, from Rs15,526.88 crore in the year-ago period, ICICI Bank said in a statement.

The total income of the bank on consolidated basis increased to Rs25,585.14 crore, from Rs23,053.82 crore in the year-ago period.

ICICI Bank's gross non-performing assets (NPAs) rose to 4.72 per cent of gross advances as against 3.40 per cent in the same quarter of the previous fiscal as on 31 December 2015.

Its net non-performing assets also rose to 2.28 per cent from 1.90 per cent during the period.

Provisioning for bad loans and contingencies rose sharply to Rs 2,844.05 crore in third quarter of 2015-16 as compared to Rs 979.69 crore in the same period of the last fiscal.

For the first nine months of 2015-16, the bank's standalone net profit rose by 9 per cent to Rs 9,024 crore as compared to Rs 8,253 crore in the same period of the previous fiscal.

Total income for the first three quarters stood at Rs49,471.62 crore against Rs45,032.54 crore for the same period of last financial year.