ICICI Bank's second-quarter profit falls, awaits central bank report

ICICI Bank's second-quarter profit falls, awaits central bank report

ICICI Bank's second-quarter profit falls, awaits central bank report

Public sector lender Canara Bank today reported a 27.1 per cent decline in net profit to Rs 260.18 crore in the second quarter of current fiscal, due to higher provisions.

The private sector bank is still waiting for the final report of the central bank's annual supervision exercise, Chief Executive Chanda Kochhar told reporters on a conference call, adding they will disclose the findings of this audit in the third quarter.

It had notched up a gain of around ₹5,600 crore on account of a stake-sale in its life insurance arm ICICI Prudential Life Insurance Company a year ago.

The bank's total income also suffered a fall of Rs 3,996.79 crore for the quarter ended September 30 as compared to the previous corresponding period. "It is for basically strengthening our provision coverage ratio, from 51 per cent past year it has increased to 54.75 per cent now", Canara Bank MD and CEO Rakesh Sharma told reporters here.

During the second quarter, Yes Bank reported a net interest income (interest earned minus interest expended) of Rs 1885 crore, a growth of 33.5 per cent over a year ago. Fee income increased 9% on a year-on-year basis to ₹2,570 crore.

But compared to other major lenders, ICICI Bank's asset quality remained steady. The net NPA too rose to 7.02 per cent from 6.69 per cent.

Provisions and contingencies fell 36.42 percent to Rs 4,502.93 crore from Rs 7,082.69 crore a year ago. Kochhar said they included Rs 651 crore in provisions towards dud assets mandated to be resolved under the insolvency laws.

Gross bad loans as a percentage of total loans jumped to 1.82 percent at end-September from 0.97 percent a quarter earlier and 0.83 percent in the year-ago period.

Commenting on the fresh slippages during the quarter, Sharma said, "we have been able to control the slippages".

She said in addition to the exposure to 9 of the 12 accounts in the first list of IBC accounts given by RBI, it has exposure to 18 more accounts in the newer list speculated to consist 30 accounts. On a quarter-on-quarter basis, it surged 72.6 percent from Rs 2,608.74 crore. 19% year-on-year growth in retail portfolio. The outstanding exposure to these accounts is Rs10,476 crore, and 98.7% of the amount is classified as an NPA.

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