ICICI’s Net Profit in Q4 sinks

ICICI-Bank_logoThe net profit of ICICI bank for the March quarter halved despite a windfall from stake sale in its brokerage unit as provisions more than doubled amid a surge in missed payments.

Although the investors expect a discussion, the board of directors did not discuss the controversy surrounding the chief executive of the firm Mrs Chanda Kochhar, regarding a possible conflict of interest in the bank’s sanction of loans to now-bankrupt Videocon Industries.

The board would meet again on Tuesday to discuss, “strategy, budget and planning for the new fiscal year like every year”  said Chanda Kochhar.

The lender has set targets to bring down bad loans, improving profitability and raising retail loans to as much as 60% of total loans in two years, as it shuns corporate lending that has become a millstone around its neck.

PAT has fallen from Rs. 2,025 crore to Rs. 1020 crore as provisions for bad debts surged to Rs. 6,626 crore. The profit was lower than a Bloomberg poll of 18 analysts who had estimated it at Rs. 1,061 crores.