NPA
WORRIES CONTINUE
On Friday 29th April, ICICI Bank came out
with its results which saw 76% decline in net profits on a standalone basis to Rs 702 crore,
and 87% decline on a consolidated basis to Rs 600 crore, thanks to provision of bad loans
amounting to 3300crores and creation of contingent liability worth 3600crores
only, resulting in lowest net profit in over 11 years. At
ICICI Bank, gross NPAs rose 24% to Rs.26,221.25 crore at the end of the March quarter from Rs.21,149.19
crore in the December quarter. Provisions and contingencies jumped 17% to Rs.3,326.21
crore in the quarter ended March from Rs.2,844.05 crore in the preceding quarter and from Rs.1,344.73
crore a year ago. As a percentage of total loans, gross NPAs made up 5.82% at
the end of the March quarter, higher than 4.72% in the previous quarter and
3.78% in the year-ago quarter.Net NPAs made up 2.98% of the bank’s loan book,
up from 2.28% in the previous quarter and 1.61% in the same quarter last year.
ICICI Bank’s results mirror those at most
other private sector lenders having a corporate-heavy loan book. Axis Bank Ltd,
YES Bank Ltd and IndusInd Bank Ltd reported an increase in gross NPAs of 48%,
139% and 38%, respectively, in the March quarter. HDFC Bank Ltd’s bad loans on
a gross basis rose by a modest 28% as India’s most valuable bank benefited from
retail-heavy exposure.
Today, ICICI Bank closed at 221, down more than 8% from the high of 242 made on Friday.
Link: http://profit.ndtv.com/news/market/article-icici-banks-rs-44-000-crore-shocker-hits-shares-10-things-to-know-1401678
An old post: http://dipesh-majumdar.blogspot.in/2016/02/rising-npas.html
An old post: http://dipesh-majumdar.blogspot.in/2016/02/rising-npas.html
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