ICICI Bank Q2 net profit falls 28% to Rs 655 crore; asset quality improves

Private lender ICICI Bank reported a 28 per cent decline in its net profit for the September quarter of financial year 2019-20. The bank posted net profit of Rs 655 crore, as compared to Rs 909 crore in the corresponding quarter last fiscal.

"Excluding the impact of one-time additional charge due to re-measurement of accumulated deferred tax, profit after tax would have been Rs 3,575 crore in Q2 FY20 compared to Rs 909 crore in Q2-2019," ICICI Bank said in a regulatory filing on Saturday.

Net interest income, the difference between interest earned and interest expended, of ICICI improved 25.53 per cent on annual basis to Rs 8,507 crore during the quarter under review. The same for the September quarter last fiscal was Rs 6,418 crore. Net interest margin stood at 3.64 per cent in Q2 FY20.

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ICICI Bank saw its asset quality improve in the second quarter of current fiscal as net non-performing asset (NPA) ratio declined to 1.6 per cent from 3.65 per cent in the year-ago period. Net NPAs decreased by 51 per cent to Rs 10,916 crore in Q2 FY20 from Rs 22,086 crore in Q2 FY19. Meanwhile, provisions (excluding taxes) declined by 37 per cent year-on-year to Rs 2,507 crore at September 30, 2019.

In September quarter, ICICI Bank also registered an increase in digital transactions. The value of debit card and credit card transactions increased 13 per cent and 30 per cent on annual basis, respectively. The bank reported 136 per cent increase in volume of mobile transactions in Q2 FY20 over the previous year.

"The Bank's total capital adequacy at September 30, 2019 as per Reserve Bank of India's guidelines on Basel III norms, including profits for H1-2020, was 16.14 per cent and Tier-1 capital adequacy was 14.62 per cent compared to the minimum regulatory requirements of 11.08 per cent and 9.08 per cent, respectively," ICICI Bank said in its statement.

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