ICICI Bank reported an 8% drop in its net profit to ₹2,049 crore for the quarter ended June due to a fall in non-interest income.
Its non-interest income was ₹3,388 crore in the fiscal first quarter compared to ₹3,429 crore in Q1 FY17.
Chanda Kochhar, MD & CEO, said non-interest income in the first quarter of the previous fiscal included an exchange rate gain related to overseas operations of ₹206 crore, which was no longer permitted to be accounted as income following an RBI guideline.
In addition, quarterly dividend of ₹204 crore from ICICI Prudential Life Insurance Company (ICICI Life) has moved to dividend payments on a half-yearly basis following its initial public offering in September 2016.
On the asset quality front, Ms. Kochhar highlighted that net non-performing assets had come down on a sequential basis from ₹25,451 crore (4.89%) to ₹25,306 crore (4.86%).
“Addition to gross NPAs, which was ₹4,975 crore, was the lowest in seven quarters,” Ms. Kochhar said, adding that the addition to NPAs in the current financial year would be lower than the previous year.
The bank had seen healthy recovery during the quarter, about ₹2,575 crore, aided primarily by loan repayment by a large cement firm.
The bank had made a provisioning of ₹2,609 crore during the quarter, as compared to ₹2,515 crore, and except for ₹160 crore which was standard asset provisioning, the remaining provision was for bad loans.
