In Q3FY24, provisions included Rs 627 crore for investment in alternative investment funds, according to the RBI’s December notification.
ICICI Bank, the private sector lender, reported a 23.6% rise in standalone profit after tax to Rs 10,272 crore for the quarter ended December 2023, compared to Rs 8,312 crore in the year-on-year quarter.
The bank’s net interest income (NII) grew 13.4 per cent to Rs 18,678 crore, compared to Rs 16,465 crore in Q3FY23.
Net interest margin (NIM) – the difference between interest income earned and interest paid – fell to 4.43% in the October-December 2023 quarter, from 4.65% in the year-ago period. Gross NPAs (non-performing assets) stood at 2.3% in Q3FY24, compared to 3.07% in the same period last year. Net NPA ratio was 0.44% as on December 31, 2023, compared to 0.55% as on December 31, 2022. The net addition to gross NPAs, excluding debt write-offs and revenue, stood at Rs 363 crore. NPA recovery and upgradation, excluding write-offs and sales, stood at Rs 5,351 crore and the bank wrote off total NPAs amounting to Rs 1,389 crore in Q3FY24.
Provisions (excluding tax provisions) stood at Rs 1,050 crore in the quarter under review, compared with Rs 2,257 crore last year. In Q3FY24, provisions included Rs 627 crore for investments in alternative investment funds (AIFs), according to the RBI’s December notification.
Last month, the RBI had directed banks, NBFCs and other lenders not to invest in any alternative investment fund (AIF) scheme involving downstream investments in a corporate debtor.
The regulator said regulated entities (REs) should liquidate their investments in the scheme within 30 days from the date the AIF made such downstream investment. If RE is unable to liquidate its investments within the stipulated time, it will have to make 100% provision against such investments, the RBI said.
Real progress in the country increased by 18.8% over the same period last year. The retail loan portfolio increased by 21.4%. Total ending deposits increased 18.7% YoY to Rs 13,32,315 crore.
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