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ICICI Bank extends intraday slide after weak Q4 results

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Capital Market
Last Updated : Apr 29 2016 | 4:47 PM IST

ICICI Bank lost 2.71% to Rs 233.65 at 13:32 IST on BSE after net profit declined 75.97% to Rs 701.89 crore on 14.51% growth in total income to Rs 18590.86 crore in Q4 March 2016 over Q4 March 2015.

The result was announced during market hours today, 29 April 2016.

Meanwhile, the S&P BSE Sensex was down 113.56 points or 0.44% at 25,489.54.

Heavy volumes were witnessed on the counter. On BSE, so far 44.33 lakh shares were traded in the counter as against average daily volume of 18.82 lakh shares in the past one quarter. The stock was volatile. The stock lost as much as 3.64% at the day's low of Rs 231.40 so far during the day. The stock rose as much as 1.6% at the day's high of Rs 244 so far during the day. The stock had hit a 52-week low of Rs 180.80 on 26 February 2016. The stock had hit a 52-week high of Rs 337.35 on 6 May 2015. The stock had outperformed the market over the past one month till 28 April 2016, gaining 6.61% compared with Sensex's 2.55% rise. The scrip had, however, underperformed the market in past one quarter, advancing 3.09% as against Sensex's 4.63% rise.

The large-cap private sector bank has equity capital of Rs 1163.03 crore. Face value per share is Rs 2.

ICICI Bank's net interest income rose 6% to Rs 5404 crore in Q4 March 2016 over Q4 March 2015.

The bank's gross non-performing advances (net of write-off) stood at Rs 26221.25 crore as on 31 March 2016 compared with Rs 21149.19 crore as on 31 December 2015 and Rs 15094.69 crore as on 31 March 2015. The ratio of gross non-performing advances to gross advances stood at 5.82% as on 31 March 2016 compared with 4.72% as on 31 December 2015 and 3.78% as on 31 March 2015. The ratio of net non-performing advances to net advances stood at 2.98% as on 31 March 2016 as against 2.28% as on 31 December 2015 and 1.61% as on 31 March 2015.

ICICI Bank has created a collective contingency and related reserve of Rs 3600 crore in Q4 March 2016 over and above provisions made for non-performing and restructured loans. This contingency provision is towards exposure to certain stressed assets in certain sectors, including iron and steel, mining, power, rigs and cement. The weak global economic environment, the sharp downturn in the commodity cycle and the gradual nature of the domestic economic recovery has adversely impacted the borrowers in these sectors. Given the weak operating and recovery environment, it may take some time for resolution of stress on borrowers in these sectors, ICICI Bank said.

The bank's provisions excluding collective contingency and related reserve jumped 147.28% to Rs 3326 crore in Q4 March 2016 over Q4 March 2015.

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ICICI Bank said that the increase in non-performing assets was primarily due to the continuing challenges in the operating and recovery environment and the Reserve Bank of India's (RBI) objective of early recognition of stress and provisioning for the banking sector. The RBI has directed India's banks to review certain loan accounts and their classification over a period of two quarters starting from Q3 December 2015. ICICI Bank said that it has now completed the exercise of review of classification of cases highlighted by RBI.

The bank's provisioning coverage ratio, including cumulative prudential/technical write-offs was 61% as at 31 March 2016. The provisioning coverage ratio, excluding cumulative prudential/technical write-offs was 50.6%.

The bank's current and savings account (CASA) deposits rose 17% in Q4 March 2016 over Q4 March 2015. CASA ratio improved to 45.8% as on 31 March 2016, from 45.2% as on 31 December 2015 and 45.5% as on 31 March 2015.

ICICI Bank's board of directors at its meeting held today, 29 April 2016, approved seeking consent of the shareholders to invite subscription for non-convertible debentures or bonds on a private placement basis for an amount of upto Rs 25000 crore.

ICICI Bank's board approved the sale of a part of its shareholding in its insurance subsidiary ICICI Prudential Life Insurance Company through an initial public offer by the bank, subject to market conditions and necessary approvals. The size and other details of the offer would be determined in due course, the bank said.

ICICI Bank is one of the leading private sector banks in India.

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First Published: Apr 29 2016 | 1:29 PM IST

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