Private lender ICICI Bank’s net profit nearly halved in the January to March quarter as the provisions it made for bad loans surged. The bank’s profit during the quarter was Rs 1,020 crore, 50% lower than Rs 2,025 crore in the same quarter a year ago.
The bank announced its quarterly earnings after market hours on Monday.
Provisions are the amount that banks set aside as expenses for the loans they believe are unlikely to be repaid. The provisions set aside by ICICI Bank between January to March were Rs 6,626 crore, more than double the amount in the same quarter a year ago. The provisions in the preceding quarter were Rs 3,570 crore.
The gross bad loans ratio – bad loans as a percentage of total loans – was 8.84% as of March 31, compared with 7.82% at the end of the previous quarter and 7.89% a year earlier.
During the quarter, ICICI Bank Chief Executive Officer Chanda Kochhar faced allegations of wrongdoing and conflict of interest in connection with a loan given by the bank in 2012.