ICICI board meet skips Chanda Kochhar loan controversy

Mae Love
May 8, 2018

ICICI Bank on Monday posted a 49.62 per cent drop in Q4 net profit to Rs 1,020 crore as against Rs 2,025 crore in the year-ago quarter.

Gross bad loans as a percentage of total loans was 8.84 per cent at the end of March, compared with 7.82 per cent at the end of the previous quarter and 7.89 per cent a year earlier. As per a poll of 18 analysts carried out by Bloomberg, the bank is expected to announce a profit of Rs 1,060 crore for the March quarter.

The slippages during the fourth quarter grew nearly four times to Rs 15,737 crore from Rs 4,380 crore in the preceding three months.

The Indian Express had first reported on records that showed Videocon group promoter Venugopal Dhoot provided crores of rupees to a firm promoted by Deepak Kochhar and two relatives six months after the Videocon Group received Rs 3,250 crore as loan from ICICI Bank in 2012.

According to sources, the recently appointed government nominee director did not attend the board meeting.

The results come against the backdrop of a series of allegations of impropriety in ICICI Banks extending loans to some companies and enjoying reciprocal benefits by the family members of the lenders CEO Chanda Kochhar.

The Bank's drill-down list (watchlist) or potential list of bad loans decreased from Rs 44,065 crore at March 31, 2016, to Rs 4,728 crore at March 31, 2018.

5 things we need to see in Arrested Development season 5
And from what the trailer reveals, it looks like the fifth season of Arrested Development is going to be funnier than ever. The biggest question about Arrested Development season 5 that fans had was when it would be appearing on Netflix.

Tutankhamun's Burial Chamber: Hidden Room Mystery Solved
It has always been speculated that beyond King Tut's tomb were a number of hidden chambers, but without any real proof. Queen Nefertiti is believed to be Tutankhamun's mother since she was his father's, Pharaoh Akhenaten, principal wife.

Unbeaten Justify wins Kentucky Derby despite record rain
Get prep sports breaking news alerts from the Gwinnett Daily Post staff delivered to your email. He is so above average, he's got unbelievable talent and he's got a mind to go with it.

Profits of the country's biggest private sector bank were dragged by an 85-percent spike in provisions due to a 17-percent rise in bad loans.

"The provision made by debiting reserves and surplus will be reversed and accounted through the P&L account over the subsequent quarters of the year ending March 31, 2019".

"The retail portfolio constituted about 57 per cent of the loan portfolio of the bank at March 31, 2018", it said.

The sale resulted in a gain after IPO related expenses of Rs 2,012.15 crore in unconsolidated financial results and Rs 1,711.32 crore in consolidated financial results for FY18.

It also envisages maintaining the average CASA (current account and saving account deposit) ratio of 45 per cent to total deposits and a new approach to corporate lending.

"However, during the fourth quarter [of FY2018], gross additions to NPA were elevated at ₹15,737 crore. the amount included about ₹9,968 crore of loans which were under the RBI scheme and which were classified as standard as on December 31, 2017. the revised framework for stressed assets, issued in February 2018, had discontinued this scheme". "ICICI Bank has always cooperated with investigative and regulatory agencies and we will continue to do so", Ms Kocchar replied, reading from a prepared note every time a question was asked on the topic.

On BSE, ICICI Bank closed at Rs 289.40 per piece up by Rs 6.50 or 2.30%.

Other reports by

Discuss This Article