ICICI Jumps After Bank Reports Swing to Profit, Lower Bad Loans
The bank’s shares rose as much as 9.1 percent on Monday, the biggest intraday gain since October 2017.
(Bloomberg) -- Shares of ICICI Bank Ltd. rose the most in more than a year after India’s second-largest private lender reported a return to profit and lower bad loans.
Late on Friday, the bank announced net income of 9.1 billion rupees ($124 million) for the September quarter, reversing a loss in the previous three-month period. Gross non-performing assets dropped and Chief Executive Officer Sandeep Bakhshi told analysts he expects bad loans for the current financial year to be much lower than last year.
The bank’s shares rose as much as 9.1 percent on Monday, the biggest intraday gain since October 2017. “This quarter adds one more data point to suggest that possibly the worst of the non-performing asset cycle is behind them,” said Krishnan ASV, vice president at SBICAP Securities Ltd.
Bakhshi replaced long-time CEO Chanda Kochhar, who stepped down earlier this month after allegations of breaches in corporate governance rules.
To contact the reporter on this story: Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.net
To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Anto Antony
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