Mumbai: ICICI Bank Ltd on Saturday reported a 28% drop in net profit for the September quarter due to a one-time hit of 3,020.67 crore as the value of future relief through deferred tax assets (DTA) will fall because of the corporate tax rate cut. Adjusted for this extraordinary item, net profit would have surged 293% to 3,575 crore from 909 crore a year earlier.

Net profit for the quarter stood at 655 crore as against 909 crore during the corresponding period a year ago. According to 23 Bloomberg analyst estimates, the bank was expected to post a profit of 1,379.80 crore.

Asset quality was maintained this quarter. Gross non-performing asset as a percentage of total advances stood at 6.37% from 6.49% a quarter ago and 8.54% a year ago. Gross non-performing assets have decreased by 16% year on year to 45,638.79 crore this quarter. Net NPA ratio decreased to 1.6% as on 30 September from 3.65% during the corresponding period a year ago.

The bank added fresh bad loans worth 2,482 crore in the second quarter compared to 2,779 crore in the previous quarter.

Provisions for the quarter declined by 37% year on year to 2,507 crore from 3,994 crore a year ago. However, on quarter on quarter basis too, it fell 28% from 3,495.73 crore.

Net interest income climbed 26% to 8,057 crore versus 6,418 crore last year same quarter. Other income rose to 3,854 crore in the second quarter to 3,191 crore a year ago. Net interest margins improved marginally to 3.64% at the end of September quarter compared to 3.61% in the previous quarter. The bank's loan book saw, on an annual basis, a growth of 13% with its retail book growing 22% year-on-year. The bank opened 345 new branches during the second quarter and hopes to add another 106 branches in the next two quarters. The bank has a network of 5,228 branches as on 30 September, 2019