ICICI Bank says provisions against bad loans to remain elevated in FY'19
The bank made a provision of Rs 17,307 crore against bad loans in 2017-18 as against Rs 15,208 crore in the year prior to that, ICICI Bank top management had said in an investors' call.
There are pressures which have come because of additions to non-performing assets in overseas branches book, it said.
"In the current financial year, that is FY2019, clearly there will be pressure on the overseas margin, especially because we are not growing that book, so in that context, any impact which is there becomes more material," it said.
The bank noted that NPA additions during FY'2019 are expected to be significantly lower than FY'2018. The impact of the Revised Framework for Resolution of Stressed Assets will need to be closely monitored, it said.
With regard to loss booked by its UK subsidiary in FY'2018, the bank said this was essential because of the increased level of provisioning on impaired loans which were largely India-linked loans reflecting the local conditions.
The private sector lender, whose MD and CEO Chanda Kochhar was forced to go on leave last month following conflict-of-interest allegations, had posted a net profit of Rs 2,049 crore in the year-ago period.
Total income on the consolidated basis rose to Rs 29,174.12 crores for the quarter under review, as against Rs 26,517.57 crore in the same period of the previous fiscal, ICICI Bank said in a statement.
This is the first ever result from announcement since Kochhar went on leave.
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