ICICI Bank Q2 profit beats estimates at Rs 3102 cr, NPA rises.
Country's largest private sector lender ICICI Bank beat analysts' expectations on profit front but asset quality was disappointing in July-September quarter. Profit increased 2.4 percent year-on-year to Rs 3,102.3 crore, supported by other income but impacted by sharp spike in provisions for bad loans.
Net interest income, the difference between interest earned and interest expended, increased to Rs 5,253.3 crore in the quarter ended September 2016 from Rs 5,251.5 crore in same period last fiscal. Asset quality worsened further in Q2 as gross non-performing assets as a percentage of gross advances climbed 95 basis points to 6.82 percent and net NPA rose 22 basis points to 3.57 percent on sequential basis.
In absolute terms, gross NPAs jumped 18.3 percent quarter-on-quarter to Rs 32,179 crore and net NPAs increased 7.8 percent to Rs 16,215 crore in the quarter ended September 2016. Provisions for bad loans shot up sharply by 652 percent to Rs 7,083 crore on yearly basis and increased 182 percent sequentially.
