India’s private sector lender ICICI Bank has reported a net profit of INR16.5bn ($258.56m) for the third quarter of fiscal year 2018, a fall of 32% compared to INR24.42bn ($382.42m) in the year ago quarter.
This is the lowest profit ICICI bank has reported in the last seven quarters.
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ICICI Bank MD and CEO Chanda Kochhar attributed the drop in net profit to the treasury income amounting to nearly INR9bn and exchange gains on overseas operations of INR820m which were absent in the previous quarter.
Overall, non-interest income also dropped to INR31.67bn from INR39.39bn reported in the previous period of the same year.
For the quarter ended 31 December 2017, the bank’s total income dipped 4% to INR88.72bn from INR93.02bn in the corresponding quarter of fiscal 2017.
The bank stated an improvement in the recoveries and upgrades that jumped to INR11.08bn from INR6.25bn a year ago.
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By GlobalDataFurthermore, new additions to non-performing assets (NPA) were reported to be at the lowest in the nine quarters at INR43.8bn at the end of December 2017.
ICICI Bank also said that the provision coverage ratio for the second list of accounts which will face insolvency proceedings stands at 36.5%. The remaining 13.5% will be made in this quarter to comply with the RBI mandate of 50% provision for such accounts.
In the second list, the bank has an exposure of nearly INR100.61bn comprising 18 accounts.
