ICICI worst performer in Sensex; M-cap erodes by Rs 7,935 crore

Mumbai: Shares of private sector lender ICICI Bank fell as much as five percent and was the worst performer in the Sensex pack, following which, the market capitalisation of the company eroded by Rs 7,935 crore.

ICICI Bank on Friday reported 22.1 percent decline in consolidated net profit at Rs 2,516 crore for the quarter ended June 30 as bad loans mounted.

The bank had posted a consolidated net profit of Rs 3,232 crore in the same quarter last fiscal.

Shares of the company today opened on a weak note at Rs 257, then declined to touch an intra-day low of Rs 248.50, down 5.45 percent from its previous close.

At the end of today's trading, the stock was quoted at Rs 249. 20, down 5.19 percent on the BSE.

Following the decline in the counter, the market capitalisation of the company eroded by Rs 7,935 crore to Rs 1.44 lakh crore.

"We believe problem on asset quality is going to continue to impact the profitability for few more quarters, and slippages other than the watch list can be a negative surprise going ahead," Angel Broking said in a research note.

The gross non-performing assets (NPAs) of the bank as a percentage of total advances jumped to 5.87 percent during the quarter under review from 3.68 percent a year ago, ICICI Bank had said in a statement.

Net NPAs of the bank also rose to 3.35 percent against 1. 58 percent in the same period a year ago.