ICICI Bank reflects slow growth owing to bad loans in Q3FY16
DSIJ Intelligence / 29 Jan 2016
ICICI Bank declared its Q3FY16 results on January 28. The bank’s total interest earned increased by 1.89 per cent to Rs 13346 crore in Q3FY16 as compared to previous period. Its net interest margin stood at 3.53 per cent with marginal expansion of one basis point during Q3FY16 on Q-o-Q basis.
ICICI Bank declared its Q3FY16 results on January 28. The bank’s total interest earned increased by 1.89 per cent to Rs 13346 crore in Q3FY16 as compared to previous period. Its net interest margin stood at 3.53 per cent with marginal expansion of one basis point during Q3FY16 on Q-o-Q basis. ICICI Bank’s total expenditure increased marginally by 0.51 per cent to Rs 11003 crore in Q3FY16 on quarterly basis.
ICICI Bank’s operating profit before provisions & contingencies increased by 8.92 per cent to Rs 2343 crore in Q3FY16 on Q-o-Q basis. The bank’s provisions and contingencies expanded more than three folds to Rs 2844 crore in Q3FY16. Meanwhile, its other income increased by 40.22 per cent to Rs 4217 crore in Q3FY16 as compared to previous quarter. ICICI Bank’s net profit declined by 0.4 per cent to Rs 3018 crore in Q3FY16 on a quarterly basis.
ICICI Bank’s asset quality deteriorated during Q3FY16. The bank’s gross non-performing assets (NPAs) stood at 4.21 per cent amounting to Rs 33393 crore in Q3FY16; while 3.36 per cent amounting to Rs 26363 crore in Q2FY16. Its net NPA ratio stands at 2.03 per cent amounting to Rs 21308 crore in Q3FY16 against 1.47 per cent to Rs 16883 crore in Q2FY16.
ICICI Bank’s total loan book stood at Rs 434800 crore as of Q3FY16. The bank has 43.8 per cent exposure towards Retail business; 28.8 per cent towards Domestic Corporate; 22.8 per cent from overseas branches; and remaining 4.6 per cent towards SME segment in Q3FY16.
On nine month financials, ICICI Bank’s total income increased by 16.17 per cent to Rs 47895 crore in 9MFY16 as compared to same period in previous fiscal year. The bank’s operating profit too rose by 15.3 per cent to Rs 192.27 crore in 9MFY16 on a yearly basis. Its provisions and contingencies expense increased by 75.65 per cent to Rs 5208 crore in 9MFY16 as compared to same period in previous financial year. ICICI Bank’s net profit also increased by 6.69 per cent to Rs 9773 crore in 9MFY16 on a yearly basis.
The share price of ICICI Bank declined by 7.28 per cent on bourses in early trades; and is trading at Rs 222.8 on an intraday basis.
ICICI Bank is a financial services group providing a range of banking and financial services including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. The bank has 4156 branches and 13372 ATMs in total as of December 2015.
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