Many large companies to move Appellate Authority against GST demand notices
In recent days, an increasing number of GST notices have been sent to many companies mainly on account of alleged discrepancy in input tax credit (ITC).
Private lender ICICI Bank on Friday reported a net loss of Rs 120 crore on a standalone basis for the first quarter of 2018-19 due to additional provisions on existing non-performing assets (NPAs).
The lender had reported a net profit of Rs 2,049 crore during the corresponding period of the previous financial year.
However, the banking major’s net interest income grew to Rs 6,102 crore during the quarter ended June 30, 2018 compared to Rs 5,590 crore in the corresponding period of the previous fiscal.
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“Overall net interest margin of 3.19 per cent in Q1-2019 compared to 3.23 per cent in FY2018,” the banking major said in a statement.
As per the statement, the net NPA ratio decreased from 4.77 per cent at March 31, 2018 to 4.19 per cent at June 30, 2018.
“While the gross additions to NPA at Rs 4,036 crore were the lowest in the last 11 quarters, additional provisions on existing NPAs as per Reserve Bank of India (RBI) guidelines resulted in total provisions of Rs 5,971 crore and a net loss of Rs 120 crore in Q1-2019,” the bank said.
The bank’s gross additions to NPA were Rs 4,036 crore, whereas recoveries and upgrades from non-performing loans were Rs 2,036 crore.
“The provision coverage ratio on non-performing loans, including cumulative technical/prudential write-offs increased by 560 bps sequentially to 66.1 per cent at June 30, 2018, further strengthening the balance sheet,” the bank said.
The bank’s mark-to-market losses on the AFS (Available for Sale) and HFT (Held for Trading) portfolio aggregated to Rs 219 crore in the Q1.
“While RBI had allowed the banks to spread such provisioning for such mark-to-market losses over up to four quarters, the bank provided for such losses in Q1-2019 itself,” the statement said.
The bank said that going forward it expects the slippages to go down and that it is at the end of the NPA cycle.
On a consolidated basis, the bank’s profit after tax plunged to Rs 5 crore in Q1-2019 compared to Rs 2,605 crore in Q1-2018.
“Consolidated assets grew by 12 per cent from Rs 984,702 crore at June 30, 2017 to Rs 1,098,790 crore at June 30, 2018,” the statement added.
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