On Friday, ICICI Bank Ltd shares rose 2.62%, or ₹ 7.50, to ₹ 293.30 on the BSE while the benchmark Sensex closed above the 37,000-point mark for the first time at 37,336.85—up 0.95%, or 352.21 points, from previous close. Photo: Mint
On Friday, ICICI Bank Ltd shares rose 2.62%, or ₹ 7.50, to ₹ 293.30 on the BSE while the benchmark Sensex closed above the 37,000-point mark for the first time at 37,336.85—up 0.95%, or 352.21 points, from previous close. Photo: Mint

Q1 results: ICICI Bank reports loss for the first time ever

ICICI Bank made a net loss of 120 crore ($17.47 million) in the three months to 30 June, compared with a profit of 2049 crore a year earlier

Mumbai: ICICI Bank Ltd, India’s largest private sector lender by assets, on Friday reported a net loss of 120 crore on a stand-alone basis for the June quarter, on account of rising bad loans and treasury losses.

The bank had reported a profit of 2,049 crore in the year-ago period. This is the first time that the bank has reported losses from its India operations.

According to ICICI Bank, it had taken a mark-to-market hit of 218 crore on its investments in government securities during the quarter, besides setting aside higher provisions against stressed accounts referred to the National Company Law Tribunal for insolvency proceedings.

The bank provided an additional amount of 706 crore against the secured portion of stressed accounts. Separately, it had taken a hit of 247 crore on a few fraud accounts, which was earlier debited from the reserves.

Its gross non-performing assets (NPAs) rose to 53,464 crore as on 30 June, compared with 43,147 crore in the year-ago quarter. Gross NPAs, as a percentage of total advances, were at 8.81% in the June quarter compared to 7.99% in corresponding period of last year. Fresh loan slippages stood at 4,036 crore, the lowest in the last 11 quarters, compared with 15,737 crore in the previous quarter. A Bloomberg poll of 17 analysts had expected the bank to post a profit of 1,459 crore in the first quarter. In a call with analysts, the management said fresh slippages will continue to be lower this year. However, the bank expects a further hit on its profit and loss account due to higher provisions.

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