ICICI Bank's Q2 provisions balloon 652%; net profit beats estimates

Interestingly, the bank's provisions and contingencies for the quarter increased by 651.75% to Rs 7082.69 crore against Rs 942.16 crore for the corresponding quarter of the previous year. On quarter-on-quarter basis, the provisions were up by 181.67%.

Gross non-performing assets (GNPA) stood at 6.82% for this period, versus 3.77% of September 2015 and 5.87% of June 2016 quarter. Photo: Youtube

ICICI Bank reported net profit of Rs 3102.27 crore for the second quarter ended September 30, 2016, registering growth of 2.38% year-on-year (yoy) and 38.96% quarter-on-quarter (qoq).

Interestingly, the bank's provisions and contingencies for the quarter increased by 651.75% to Rs 7082.69 crore against Rs 942.16 crore for the corresponding quarter of the previous year. On quarter-on-quarter basis, the provisions were up by 181.67%.

In regards to provision, ICICI Bank said, "During this quarter, it made additional provisions/loss of Rs 3588.04 crore."

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On the other hand, gross non-performing assets (GNPA) stood at 6.82% for this period, versus 3.77% of September 2015 and 5.87% of June 2016 quarter.

While net interest income remained subdued at Rs 5253.29 crore on yoy basis. However it saw sequential growth of 1.83% on qoq basis.

Gains from stake sale of 12.63% in ICICI Prudential was at Rs 5628 crore.

Total income from operations was at Rs 22,759.08 crore, which was up by 41.30% yoy and 35.80% qoq.

The Bank continued to achieve robust growth in current and savings account (CASA) deposits. The Bank’s total CASA deposits increased by 18% yoy to Rs 205,256 crore (US$ 30.8 billion) at September 30, 2016.

Total advances was at Rs 4.54 lakh crore growing by 11% YoY

Year-on-year growth in domestic advances was 16%.

Shares of ICICI Bank closed at Rs 278.75 on BSE, up by 3.36%.