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ICICI Bank June Quarter Profit Falls 8%, Meets Estimates

ICICI Bank's domestic loans in the quarter grew 11 per cent from a year earlier. Net interest income rose 8 per cent year-on-year, while fee income increased 10 per cent from a year earlier.
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ICICI Bank is India's third biggest lender by assets
ICICI Bank is India's third biggest lender by assets
ICICI Bank Ltd, India's third biggest lender by assets, reported an 8 per cent fall in its first-quarter profit on Thursday, largely in line with analysts' estimates, as provisions rose. Net profit fell to Rs 2,049 crore ($319.6 million) in the quarter ended June 30, compared with the average analysts' estimate of Rs 2,043 crore, according to Thomson Reuters data. Banks are battling slower loan growth as companies have yet to restart projects they had stalled during an economic downturn. Banks have also been hit by higher provisions and regulatory scrutiny as bad loans in the sector hit a record $150 billion last December.

The Mumbai-based bank, which has the highest bad loans in absolute terms among private sector lenders in the country, said it set aside Rs 2,609 crore in the June quarter towards loan-loss provisioning, almost 4 per cent higher than a year earlier.Gross non-performing loans as a percentage of total loans rose to 7.99 per cent at end-June from 7.89 per cent at March-end and 5.28 per cent a year earlier.

Net non-performing loans as a percentage of total loans fell to 4.86 per cent at end-June from 4.89 per cent at March-end, but rose compared with 3.01 per cent a year earlier.

ICICI Bank's domestic loans in the quarter grew 11 per cent from a year earlier. Net interest income rose 8 per cent year-on-year, while fee income increased 10 per cent from a year earlier.

($1 = Rs 64.1075)

© Thomson Reuters 2017



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