Private sector lender ICICI Bank reported a 5% drop in net profit to ₹969 crore in the fourth quarter ended March 31, 2019, as a result of higher expenses. This was lower than ₹2,129 crore profit expected by analysts. Total expenses jumped 18.1% to₹14,680 crore.
In comparison, the bank had posted a net profit of ₹1,020 crore in the same period last year. The bank’s asset quality improved quarter on quarter while net interest income went up 27% in the fourth quarter. ICICI Bank’s shares today ended flat at ₹401 ahead of the earnings announcement.
The net NPA ratio dropped to 2.06% of advances as of March 31, 2019, from 2.58% at December 31, 2018. Net interest income (NII) increased by 27% year-on-year to₹7,620 crore in Q4-2019 from ₹6,022 crore in the quarter ended March 31, 2018 (Q4-2018).
NII in Q4-2019 includes ₹414 crore of interest on income tax refund. The net interest margin was 3.72% in Q4-2019 compared to 3.40% in the quarter ended December 31, 2018. Provisions were ₹5,451 crore in Q4-2019 compared to ₹6,626 crore in Q4-2018
The gross additions to NPA were ₹3,547 crore in Q4-2019 as compared to ₹2,091 crore in Q3-2019. The gross NPA additions in Q4-2019 include an account in the sugar sector where the payment obligations are being met, which has been classified as non-performing pursuant to a regulatory interpretation communicated to banks relating to change in management.
Recoveries and upgrades of non-performing loans were ₹1,522 crore in Q4-2019. Fee income increased 15% year-on-year to ₹3,178 crore
Domestic loan growth at 17% year-on-year at March 31, 2019 driven by retail; tetail loans grew by 22% year-on-year and constituted 60% of the loan portfolio at March 31, 2019
Provision coverage ratio (including technical/prudential write-offs) increased from 60.5% at March 31, 2018 to 80.7% at March 31, 2019
