ICICI Bank Q4 profit dives 50%, bad loan provisions surge: Highlights

ICICI Bank Ltd, India's third-largest lender by assets, posted a near 50 per cent drop in its fourth-quarter net profit as its provisions for bad loans surged.

Net profit for the three months to March 31 fell to Rs 10.20 billion ($151.94 million) from 20.25 billion rupees a year earlier, the bank said in a statement on Monday.

Twelve analysts on average had expected the company to post a net profit of Rs 10.77 billion, according to Thomson Reuters data.

Gross bad loans as a percentage of total loans was 8.84 per cent at the end of March, compared with 7.82 per cent at the end of the previous quarter and 7.89 per cent a year earlier.

Gross non-performing assets (NPAs) worsened to 8.84 per cent of total loans from 7.82 per cent in the December quarter and 7.89 percent in the March quarter last year.

In absolute terms, gross NPAs jumped to Rs 540.63 billion, up from 460.39 billion in December quarter.

The results come against the backdrop of a series of allegations of impropriety in ICICI Bank's extending loans to some companies and enjoying reciprocal benefits by the family members of the lender's CEO Chanda Kochhar.

ICICI Bank gained 3.6 per cent ahead of its March-quarter results.

Highlights of what ICICI Bank CEO Chanda Kochhar said:

* About 96% of exposure to top 20 borrowers was to high rated companies, says ICICI Bank's Chanda Kochhar

* A lot of stress has already been recognised. Going forward, our focus will be on resolution

* ICICI Bank board will meet on Tuesday for strategy and budget planning.

* The board did not discuss Videocon issue in today's meeting

* Total exposure to borrowers sent to Bankruptcy court about Rs 152 billion. The bank has 50 per cent provision cover on those loans.


* March quarter net profit Rs 10.20 billion versus profit of Rs 20.25 billion last year

* Consensus forecast for March quarter profit was Rs 10.77 billion

* March quarter interest earned Rs 142.64 billion versus Rs 135.69 billion last year

* March quarter provisions and contingencies Rs 66.26 billion versus Rs 28.98 billion last year

* ICICI Bank says the company recommended dividend of 1.50  per share 

* March quarter gross NPA 8.84 per cent versus 7.82 per cent previous quarter

* March quarter net NPA 4.77 per cent versus 4.20 per cent previous quarter

* Bank says domestic net interest margin was 3.67 per cent and the overall net interest margin was 3.24 per cent in Q4-2018 

* Recoveries and upgrades from non performing loans were Rs 42.34 billion in Q4-2018

* ICICI Bank board approved seeking consent to invite subscription for NCDS or bonds on private placement basis for up to Rs 250 billion

* ICICI Bank says company's drilldown list decreased from Rs 440.65 billion at March 31, 2016 to Rs 47.28 billion at March 31, 2018 

* During Q4, made provision for certain fraud and non-performing cases by debiting reserves and surplus amounting to Rs 199.8 million 

* Classified 3 borrower accounts in gems & jewellery sector with fund-based outstanding of Rs 7.95 billion as fraud and non performing

* During Q4 made provision of Rs 2.89 billion via profit & loss account, Rs 5.05 billion by debiting reserves & surplus, as permitted by RBI

* Provision made by debiting reserves, surplus will be reversed, accounted via P&L account over subsequent quarters of FY 2019

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