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News Release

January 28, 2000

ICICI Q3:99-2000 - Profit After Tax Up By 27%

The Board of Directors of ICICI (NYSE: IC and IC.d) at its meeting held in Mumbai today, approved the audited accounts of ICICI for the nine month period ended December 31, 1999.

Profit after tax for Q3:99-2000 amounted to Rs. 271 crore (including extraordinary income of Rs. 19 crore), an increase of 27% over Rs. 213 crore in the corresponding quarter of the previous year. During the nine month period ended December 31, 1999, profit before tax and provisions was Rs. 1,314 crore compared to Rs. 1,095 crore in the corresponding period of the previous year, registering a growth of 20%. Notwithstanding the enhanced provisions and write-offs of Rs. 435 crore in the nine month period ended December 31, 1999 (Rs. 302 crore in the corresponding period of the previous year), profit after tax amounted to Rs. 811 crore (including extraordinary income of Rs. 19 crore). This represented an increase of 12.6% over the corresponding figure of Rs. 721 crore* in the previous year.

The net NPAs outstanding was Rs. 3,649 crore and the net NPA ratio as per Indian GAAP was 7.4% at December 31, 1999. As per the RBI clarification issued in December 1999, the general provision held against standard assets has not been netted off. If general provisions were netted off, the net NPL ratio at December 31, 1999 would have been 7.1%.

Business Operations

During the nine month period ended December 31, 1999, ICICI's approvals aggregated Rs. 32,671 crore, as against Rs. 27,490 crore for the corresponding period in the previous year, thereby registering a 19% growth. During the same period, ICICI's disbursements aggregated Rs. 17,017 crore compared to Rs. 13,804 crore for the corresponding period in the previous year, registering a growth of 23%. Corporate finance assistances accounted for 38% of approvals and 45% of disbursements. Retail finance approvals and disbursals were 1.4% and 2.0% of aggregate approvals and disbursals respectively.

e-Commerce Initiatives

To capitalise on the opportunities presented by the paradigm shift taking place with the advent of e-commerce, ICICI has formed a specialised group-wide e-commerce team. ICICI Group has launched a number of strategic initiatives on the Internet including ICICI Direct - India's first Internet stock trading service and started work on an Open Payment Gateway for B2B and B2C segments in association with Compaq and QSI Payment Systems of Australia. We also offered our customers for the first time, an Internet based B2B payment module "i-Payments" for purchasers and sellers to effect payments online. A critical mass of customers, vendors and distributors have signed up for a closed e-commerce group. This links corporate clients together with their vendors and distributors in a closed loop facilitating ease of funds transfer and inventory control.

Settlements

ICICI continued to focus on its initiatives in respect of recovery and settlements from problem cases. During the period under review, ICICI settled dues aggregating Rs. 289 crore from 77 cases (Rs. 264 crore from 66 cases in the corresponding period last year). The present value of principal dues settled was about 76% during this period.

Resources

During the nine month period ended December 31, 1999, ICICI mobilised medium and long-term rupee resources of Rs. 12,284 crore, including Rs. 1,620 crore mobilised through five public issue of bonds from about 430,000 retail investors. As a part of its "click and brick" strategy, ICICI today has 70 ICICI Centres across the country.

Capital Adequacy

Capital adequacy ratio was 17.7% at December 31, 1999 with Tier2 capital adequacy ratio at 11.8%.

Performance of Subsidiaries

The ICICI Group operates as a virtual Universal Bank offering the complete range of products and services to corporate and retail customers in India. ICICI Bank's net profit in Q3: 99-2000, more than doubled to Rs. 28 crore as compared with Rs. 14 crore for the corresponding quarter in the previous year. The profit after tax for ICICI Securities for the quarter ended Q3: 99-2000 increased by 276% to Rs. 16 crore from Rs. 4 crore in the corresponding period in the previous year. ICICI Venture registered more than 500% rise in profits in Q3:99-2000 from Rs. 3 crore to Rs. 22 crore.

Summary Profit and Loss Statement

Figures in Rs.crore

Q3:1998-99

Q3:1999-00

Growth%

Apr-Dec 1998

Apr-Dec 1999

Growth%

FY:98-99

Fund based income

1,773

2,116

19.3

5,145

6,067

17.9

7,031

Less : Interest and depreciation charges

1,431

1,645

14.9

4,128

4,759

15.3

5,638

Net fund based income

342

472

37.8

1,017

1,308

28.6

1,393

Add : Fees and commissions

50

65

30.2

175

205

17.1

311

Net income from operations

392

537

36.8

1,192

1,513

26.9

1,704

Less : Operating expenses

52

72

40.4

156

214

37.4

226

Profit from operations

341

464

36.3

1,036

1,299

25.3

1,478

Add : Other income*

7

4

(44.6)

59

15

(74.2)

90

Profit before provisions and tax

348

469

34.6

1,095

1,314

20.0

1,568

Less : Provisions and write-offs

114

189

66.1

302

435

44.3

472

- For loans & debentures

88

135

52.9

241

324

34.6

364

- For investments

26

54

111.3

61

111

82.8

108

Profit before tax

234

280

19.3

793

879

10.7

1,096

Less : Provision for tax

21

27

30.5

72

87

19.2

95

Profit after tax

213

252

18.1

721

792

9.9

1,001

Add : Extraordinary gains

-

19

-

-

19

-

-

Profit after tax (including extraordinary gains)

213

271

27.2

721

811

12.6

1,001

*Other income for Apr-Dec 1998 and FY: 1998-99 includes profit on account of repurchase of foreign currency bonds of Rs. 38 crore and Rs. 45 crore, respectively.

Summary Balance Sheet (Indian GAAP) Rs. crore

Dec 31, 1998

Dec 31, 1999

Growth%

Mar 31, 1999

Net loans and debentures

40,895

45,183

10.5

42,010

Other Investments

2,514

3,114

23.9

2,598

Current assets

9,142

11,512

25.9

9,903

Fixed assets

3,164

4,433

40.1

3,717

Miscellaneous expenditure

285

315

10.4

319

Total assets

56,000

64,557

15.3

58,547

Shareholders' equity and reserves

5,228

8,016

53.3

5,135

Of which : Equity capital

480

768

60.0

480

Preference capital

1,229

1,308

6.4

1,383

Borrowings

45,691

50,799

11.2

47,659

Current liabilities

3,852

4,434

15.1

4,370

Total liabilities

56,000

64,557

15.3

58,547


Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by ICICI Limited with the Securities and Exchange Commission of the United States. ICICI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

*Comprises ICICI's reported profit of Rs. 726 crore and attributable loss of Rs. 5 crore of erstwhile Anagram Finance which was merged with ICICI effective April 1, 1998.

For further investor queries:

Contact: Mr. A.P. Singh on +91-22-6536262 or email to singhap@icici.com