A massive 92 per cent plunge in treasury income has whittled down other gains ICICI Bank has made in the December quarter, which pulled down net income by 27.45 per cent to Rs 1,894.15 crore on a consolidated basis.
Even on a standalone basis also, net profit moved Rs 1,650.24 crore during the reporting quarter from Rs 2,441.82 crore.
Managing Director and Chief Executive Chanda Kochhar attributed the dip in profit to the very low treasury income, which slid by over 92 per cent to a low Rs 66 crore on hardening of yields, and also due to forex gains of Rs 82 crore which it had booked in the year-ago period.
During the December quarter, a slew of banks have been reporting reverses on treasury side due to the hardening of yields, which is expected to drill a Rs 15,000-crore hole into the system, according to analysts.
She said the bank’s core operating profit rose 10 per cent to Rs 4,992 crore.
However, on the asset quality side, the bank made considerable gains with fresh addition to gross non-performing assets list came down to a nine-quarter low of Rs 4,380 crore.
Also, unlike its peers, bank did not have to disclose any ‘divergences’ in NPA recognition from the RBI’s risk-based supervision exercise which got completed during the quarter.