Mumbai: India’s largest private sector lender by assets ICICI Bank on Monday reported a 2.4 per cent rise in standalone net profits for the quarter ended September 2016, beating expectations.
The bank’s standalone net profit stood at Rs 3,102 crore as compared to Rs 3,030 crore reported during the same period last year and Rs 2,232 crore in Q1FY17.
However, the bank’s provision for non-performing assets saw a significant jump during the quarter. The private sector lenders net non-performing asset ratio increased to 3.21 per cent on September 30, 2016, from 3.01 per cent in the same period last year.
“Slippages of Rs 8,000 crore were in line with what we were expecting. “Though in absolute terms, slippages look still high, the good news is that 80 per cent of the slippages has come from the watch list and restructured book.
The fact that slippages from the regular loan book have been contained low is a positive sign. For the next quarter, while the slippages and credit cost are expected to remain high, it seems the bank will be able to largely clean up the book and start looking at regular growth from the second half of FY18,” said Siddharth Purohit, Angel Broking.
