Mumbai: ICICI Bank reported a surprise 4.4 % fall in December quarter consolidated net profit at Rs 3,122 crore, as its provisions for stressed accounts rose three-fold after the RBI asked banks to recognise asset quality stress of large accounts. The country’s largest private sector lender warned of NPA pains in the March quarter as well.
The bank saw its gross non-performing assets grow nearly three-fold to Rs 6,544 crore during the reporting period that also pushed total provisions to Rs 2,844 crore. Accordingly, gross NPA rose to 4.72 % from 3.90%.
Managing Director and CEO Chanda Kochhar said that 60 % of the jump in gross NPA was due to the one-time review of asset quality stress undertaken by the RBI, after which it asked lenders to upfront recognise 150 accounts as non-performing and fully provide for them.
The steel sector, which accounts for 4.5 per cent of its loans, contributed the most for the spurt in the asset stress, she said.
