Operations Review - Financial Year ended March 31, 1999 (FY1998-99)
During FY1998-99, ICICI's disbursals aggregated Rs. 19,225 crore, as
against Rs. 15,807 crore for the previous year, thereby registering a
22% growth. During the same period, ICICI's approvals aggregated Rs. 34,220
crore, as against Rs. 24,717 crore for the previous year, indicating a
growth of 38%.
ICICI has been able to record a healthy business growth while improving
the risk profile of its asset portfolio by continued focus on top quality
corporate finance and structured project finance assistances. ICICI's
superior structuring skills have been the key enabler in its successful
entry as a key solutions provider for top rated clients. While the infrastructure
and oil & gas sectors aggregated 48% and 37% of approvals and disbursals
respectively, non-project corporate finance assistances accounted for
30% and 35% of approvals and disbursals respectively. ICICI's project
finance assistance to the traditional manufacturing sector was 19% of
total approvals and 25% of total disbursals. During FY1998-99, ICICI initiated
its foray into the retail asset business through launch of car booking
products for new generation cars. It is commendable that ICICI achieved
a significant market share in car bookings during this period. Following
this achievement, ICICI made a soft launch of car loans and housing loan.
In line with ICICI's strategy of providing funding across the maturity
spectrum, during FY1998-99, STPR (Short Term Prime Rate) and MTPR (Medium
Term Prime Rate) related disbursals accounted for 33% of total disbursals.
However, long term funding continues to be the primary activity of ICICI
with LTPR (Long Term Prime Rate) related loans accounting for 52% of total
disbursals. Foreign currency loans were only 6% of total disbursals reflecting
the lower demand for foreign currency funds. The balance 9% of total disbursals
comprised leasing, deferred credit, line of credit, retail financing and
other forms of assistance.
The diversification achieved in the disbursals during FY1998-99 is reflected
in the purpose-wise distribution given below.