Q1 results: ICICI Bank reports loss for the first time ever

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ICICI Bank made a net loss of ₹ 120 crore ($17.47 million) in the three months to 30 June, compared with a profit of ₹ 2049 crore a year earlier

Bengaluru,27 July 2018 : ICICI Bank Ltd, India’s third-largest lender by assets, reported a shock first-quarter (Q1) net loss on Friday on higher provisions for bad loans and treasury losses. The bank made a net loss of ₹ 120 crore ($17.47 million) in the three months to 30 June, compared with a profit of ₹ 2049 crore a year earlier, it said in a statement. Analysts on average had expected a net profit of ₹ 1462 crore, according to Thomson Reuters I/B/E/S.

Gross bad loans as a percentage of total loans was 8.81% at the end of June, compared with 8.84% at the end of the previous quarter and 7.99% a year earlier.

The bank reported net interest income of ₹ 6,102 crore in Q1 FY19 as compared to ₹ 5,590 crore in the year-ago period. Overall, net interest margin dipped to 3.19% in Q1 as compared to 3.23% in the year-ago period. In terms of asset quality, net NPA ratio decreased from 4.77% of total advances in March quarter to 4.19% in June quarter. The bank reported recoveries of ₹ 2,036 crore in the June quarter.

Other income, which includes core fee income, rose 13.69% to ₹ 3851.81 crore in the three months ended 30 June from ₹ 3387.91 crore a year ago. Post-provision, the net NPA ratio was at 4.19% against 4.77% in the January-March quarter and 4.86% in the year ago quarter.

On Friday, ICICI Bank Ltd shares rose 2.62%, or ₹ 7.50, to ₹ 293.30 on the BSE while the benchmark Sensex closed above the 37,000-point mark for the first time at 37,336.85—up 0.95%, or 352.21 points, from previous close.