ICICI Bank Q2 profit falls by 28 pc on deferred tax adjustment
Mumbai (Maharashtra) [India], Oct 29: India’s largest private sector lender ICICI Bank said on Saturday its profit after tax dropped by 28 per cent to Rs 655 crore in the second quarter of current fiscal (Q2 FY20) due to deferred tax assets adjustment.
However, overall earnings were healthy with improvement in asset quality. “Excluding the impact of one-time additional charge due to remeasurement of accumulated deferred tax, the profit after tax would have been Rs 3,575 crore in Q2 FY20, a growth of nearly four-fold compared to Rs 909 crore in Q2 19,” the bank said in a statement.
Net interest income (NII) during the quarter grew by 26 per cent to Rs 8,057 crore from Rs 6,418 crore in Q2 FY19. Total advances increased by 13 per cent to Rs 6.13 lakh crore versus Rs 5.44 lakh crore, marking 13 per cent credit growth year-on-year.
Domestic loan growth stood at 16 per cent as the bank continued to leverage its strong retail franchise, resulting in a 22 per cent growth in the retail loan portfolio (which was 49.9 per cent of the total portfolio) in September, ICICI said.
Excluding non-performing and restructured loans, the growth in domestic corporate loans was about 7 per cent year-on-year. Net interest margin for the quarter came in at 3.64 per cent, improving 3 basis points sequentially and 31 basis points year-on-year, the bank said.
Significantly, asset quality improved with net non-performing assets (NPA) decreasing by 51 per cent from Rs 22,086 crore in Q2 FY19 to Rs 10,916 crore in Q2 FY20. Provisions excluding taxes declined by 37 per cent year-on-year to Rs 2,507 crore. The net NPA ratio decreased from 1.77 per cent in June to 1.6 per cent in September — the lowest in the past 15 quarters.
