ICICI Bank's gross bad loans drop to the lowest in 5 years
- The share of bad loans in ICICI Bank's kitty have reduced for the 20th consecutive quarter.
- ICICI Bank's first quarter earnings also saw profit jump by 36% year-on-year (YoY).
- It has kept a cushion of around ₹5,550 crore ($735 million) in provisions for the impact of the coronavirus.
The bank’s net non-performing assets (NNPA) ratio dropped to 1.23% and gross NPA (GNPA) dropped to 5.46%. “The bank’s GNPA lowest in the last 20 quarters,” said ICICI President Sandeep Batra during the earnings call. He added that the number of loans under moratorium has reduced by 30% three months ago to 17% right now.
AdvertisementThat being said, the bank has set aside ₹5,550 crore ($735 million) in provisions in anticipation of August 31, when the Reserve Bank of India’s (RBI) comes to an end. “The provision has been made to cushion the bank’s balance sheet from the impact of the coronavirus pandemic,” said Batra. ICICI Bank’s total provisions now amount to ₹8,275 crore ($1.1 billion).
Its net profit grew by 36% to ₹2,599 crore between April and June as compared to the previous quarter last year.
Analysts believe that a big part of the jump is ICICI Bank’s stake sale in ICICI Prudential LIfe and ICICI Lombard.
|ICICI Prudential Life||₹840 crore|
|ICICI Lombard||₹2250 crore|
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