Stake sales help ICICI Bank Q1 net profit rise 36% to ₹2,599 cr – Livemint

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Stake sales help ICICI Bank Q1 net profit rise 36% to ₹2,599 cr – Livemint


(Photo: Bloomberg)
(Photo: Bloomberg)

2 min read

.Updated: 25 Jul 2020, 03:50 PM IST


Edited ByJ. Jagannath

  • During Q1FY21, the bank has made an additional Covid-19-related provision amounting to 5,550 crore
  • ICICI Bank had in June sold 3.96% stake in arm ICICI Lombard while it sold 1.5% stake in ICICI Prudential Life for total consideration of 3,090 cr

New Delhi:Private lender ICICI Bank on Saturday reported 36% increase in standalone net profit at 2,599 crore for the quarter ending 30 June, 2020. The bank had reported net profit of 1,908 crore in the year-ago period.

ICICI Bankhad in June sold 3.96 per cent stake in arm ICICI Lombard for 2,250 crore while it sold 1.5 per cent stake in ICICI Prudential Life for 840 crore.

“During Q1FY21, the Bank sold equity shares representing 3.96% in ICICI Lombard General Insurance Company Limited and 1.5% in ICICI Prudential Life Insurance Company Limited for a total consideration of 3,092.93 crore. The sale resulted in net gain (after sale related expenses) of 3,036.29 crore in standalone financial results and 2,715.87 crore in consolidated financial results for Q1FY21,” the bank said.

“The lockdown measures have significantly impacted economic activities in the quarter. Current estimates of growth in India’s gross domestic product by various agencies and analysts indicate a contraction in the economy in fiscal 2021. During Q1FY21, the loan growth was impacted due to lower credit demand and fee income declined due to lower borrowing and investment activity by customers and lower consumer spends. The slowdown in the economy is expected to result in higher additions to non-performing loans, increase in provisions, lower loan growth and fee income,” the bank said in a regulatory filing.

On a consolidated basis, its net profit for the April-June period improved by 24 per cent at 3,117.68 crore as against 2,513.69 crore in the corresponding quarter of the previous fiscal.

The bank’s income on a consolidated basis rose to 37,939.32 crore in the said quarter from 33,868.89 crore in April-June 2019.

During Q1FY21, the bank has made an additional Covid-19-related provision amounting to 5,550 crore.

The lender witnessed an improvement in asset quality as gross non-performing assets (NPAs) fell to 5.46%t of the gross advances by the end of June 2020, from 6.49% a year ago.

Net NPA ratio decreased from 1.41% in March quarter to 1.23% in June quarter and 1.77% in year-ago period.

The bank’s net interest income (NII) rose nearly 20% on year-on-year basis to 9,278 crore.

On Friday, the bank’s scrip on BSE closed 2.66% lower at 381.80.

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