ICICI Bank adds Rs 1,000 cr to watchlist, but pace of slippages shrink 55%

ICICI Bank

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26 Aug, 2025 12:21

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ICICI Bank, country’s largest private lender, witnessed a rise of Rs 1,000 crore in its drilled down, or the watchlist of potential stressed loans.

However, the pace of slippages into bad loans or non-performing assets (NPAs) reduced by over 55 percent from three months ago.

The Mumbai-based private bank reported an 8 percent dip in net profit at Rs 2,049 crore during the first quarter from April to June period.

During this period, the drilled down list saw an increase of Rs 1,000 crore to Rs 20,300 crore while about half of slippages in the corporate and small and medium sector loans came from drilled down or restructured accounts.

The additions to the drilled down list has come from power sector. “After the Supreme Court judgment on the power companies, there has been a re-rating of those companies which have come to below investment grade,” said Chanda Kochhar, ICICI bank’s MD and CEO.

Total slippages for the bank in the three months stood at Rs 4,975 crore, which were much lower than Rs 11,289 crore reported in Q4FY17.

“We had said earlier this year that we do expect the additions to NPAs to be lower this year than last year, beyond this, we do not have any specific guidance,” Kochhar said.

As a precautionary measure as directed by the Reserve Bank of India to make provisions towards standard assets with potential stress including telecom sector, ICICI Bank has set aside Rs 160 crore towards the threat sectors — power, iron and steel, mining, rigs and telecom sector, which got added to the list this quarter.

On the insolvency cases, ICICI Bank has outstanding loans with exposure of Rs 6,889 crore towards insolvency accounts and Rs 351 crore non-fund based exposure towards 9 of the 12 accounts referred by RBI in June to be taken to the NCLT (National Company Law Tribunal) under the insolvency and bankruptcy code.

The bank has already made 41 percent provisions worth Rs 2,828 crore towards these accounts and it will further set aside Rs 650 crore more provisions spread over the next three quarters this year.

For the first quarter this year in FY18, the bank’s net NPAs were the lowest in the last seven quarter at Rs 25,306 crore, down 0.6 percent from Rs 25,451 crore.

The net NPA ratio as a percentage of total loans declined from 4.89 percent at March 31, 2017 to 4.86 percent at June 30, 2017.

On the bank’s performance, Kochhar added, “This quarter we saw many encouraging trends. These were healthy and focused loan growth, improving core income and expense trends and improving asset quality trends. Our focused approach to growth is in line with improving our asset mix which is lending more to retail segments and higher corporate segments and at the same time reducing the concentration risks.”