ICICI Bank jumps up on reporting stable asset quality in Q1FY19

ICICI Bank posted a net loss in Q1FY19 due to higher provisions in the quarter. However, the bank also witnessed an improvement in asset quality.

The net interest income for the quarter rose by 9.2 per cent yoy and 1.3 per cent qoq to Rs. 6,102 crore in Q1FY19 vs Rs. 5,590 crore in Q1FY18 and Rs. 6,022 crore in the previous quarter. This was largely led by 9.5 per cent yoy increase in interest income for the quarter.

The asset quality showed significant improvement sequentially with GNPAs declining 1 per cent qoq to Rs. 53,464 crore in Q1FY19 vs Rs. 54,064 crore in the previous quarter. The GNPAs as a percentage of total advances also contracted marginally by 3 bps over the previous quarter and rose by 91 bps over the previous year.

The provisions remained elevated for the quarter over the previous year which led to negative bottom-line for the quarter. The provisions more than doubled to Rs. 5,971 crore in Q1FY19 vs Rs. 2,608 crore in Q1FY18. However, the sequential provisions declined by 10 per cent qoq. The net loss for the quarter stood at Rs. 120 crore in Q1FY19 vs net profit of Rs. 1,020 crore in Q4FY18 and Rs. 2,049 crore in Q1FY18.

The advances remained stable with minimal growth of 1 per cent sequentially and 10 per cent yoy to Rs. 5,16,288 crore in Q1FY19.

Meanwhile, the stock of ICICI Bank is trading up by 1.38 per cent up at Rs.297 per share on Monday.