ICICI Bank posts Rs 798cr loss under US norms

Under the Indian GAAP, the consolidated profit after tax of the country’s second largest bank was Rs 1,152 crore ($242 mn), it said adding, capital gains of Rs 1,191 crore ($250 mn) on sale of shares of ICICI Bank and provisions of Rs 1,791 crore ($377 mn) were both accounted for in profit and loss (P&L) account. However, this was not included in the US GAAP norms.

However, the US GAAP requires the capital gains to be directly added to the networth without being routed through P&L account while provisions of Rs 2,226 crore ($468 mn) were accounted for in P&L under this method. There are significant technical differences in the basis of accounting between US and Indian GAAP. Therefore the financial statements under this two principles are not comparable, it said.