ICICI bank posts loss for the first time in 16 years
Private sector lender ICICI Bank has suffered losses for the first time in 16 years. According to the financial results announced by the bank on Friday for the first quarter of the current financial year (April-July, 2018), it had to bear a loss of Rs 119.5 crore on standalone basis. The bank had a net profit of Rs 2,049 crore in the same quarter last fiscal. At the same time, on the consolidated basis, the net profit of the bank in the first quarter of the current fiscal was just Rs 4.93 crore, which was Rs 2,604.73 crore in the same period last fiscal.
During the reporting period, the bank did not get any relief even on the loan (NPA) front. The bank has said that its NPA gross advance reached 8.81% in the first quarter, which was 7.99% in the same quarter last fiscal. Total income of the bank increased to Rs 18,574.17 crore in the quarter under review.
The bank has said that in the first quarter, it provided a provision of Rs 5,971.29 crore for the NPA and contingency expenses. In the same period of last financial year, the bank had to make only Rs 2,608.74 crore in these items. It is noteworthy that in the case of loan given to Videocon Group, the bank’s MD and CEO Chanda Kochhar is charged with lending out loan in exchange for service. Kochar is on leave till the investigation of this case is completed. Before giving information about the results by the bank, its shares in BSE closed with a 2.6 per cent surge.
