ICICI Bank’s Profit Misses Estimate on a One-Time Tax Impact
ICICI Bank’s Profit Misses Estimate on a One-Time Tax Impact
(Bloomberg) -- ICICI Bank Ltd., India’s second-largest private lender, posted a lower than expected profit due to a one-time income tax adjustment.
Net income fell 28% to 6.55 billion rupees ($98 million) for the three months ended Sept. 30 from 9.1 billion rupees a year earlier, the lender said Saturday. The profit compared with analysts expectation of 13.8 billion rupees on average, according to estimates compiled by Bloomberg.
The Mumbai-based lender, with a large mortgage and consumer loan book, has been relatively less hit by an ongoing shadow banking crisis compared to some of its peers who have higher exposure to this default-ridden sector. On Friday, State Bank of India’s shares jumped the most in a month after the bank reported a narrowing bad loan ratio.
ICICI Bank set aside 37.1 billion rupees toward tax expenses for the quarter ended September, sharply above 3.47 billion rupees a year ago. The so-called core operating profit -- that excludes provisions, tax and treasury income -- grew 24% from the previous year to 65.3 billion rupees, the bank said.
ICICI Bank’s gross bad-loan ratio stood at 6.37% compared with 6.49% at June-end while provisions and contingencies fell to 25 billion rupees from 35 billion the preceding quarter. Shares of the bank had that gained 3.2% to 469.1 rupees on Friday, extending this years gains to 30%.
To contact the reporter on this story: Suvashree Ghosh in Mumbai at sghosh186@bloomberg.net
To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Anto Antony, Jeanette Rodrigues
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