News Release
Mumbai, April 28, 2000
PERFORMANCE REVIEW - FY1999-2000
The Board of Directors of ICICI at its meeting held in Mumbai today,
approved the audited accounts of ICICI (NYSE: IC and IC.d) for the financial
year ended March 31, 2000 ("FY1999-2000").
Results - Indian GAAP : 41% increase in Q4 Profit after Tax
Profit after tax for Q4:99-2000 increased 41% to Rs. 395 crore compared
to Rs. 280 crore in the corresponding quarter of the previous year. During
FY1999-2000, profit before tax and provisions increased 28% to Rs. 2,018
crore from Rs. 1,574 crore in the previous year. Notwithstanding the enhanced
provisions and write-offs of Rs. 690 crore (Rs. 478 crore in the previous
year), profit after tax amounted to Rs. 1,206 crore in FY1999-2000. This
represented an increase of 21% over the corresponding figure of Rs. 1,001
crore in the previous year.
The Directors have proposed a dividend rate of 55% (Rs. 5.50 per share
of Rs. 10/- each) for FY1999-2000 including the interim dividend of 45%
declared on March 17, 2000. The summary of the financial statements as
per Indian GAAP at March 31, 2000 is enclosed.
Results - US GAAP : 30% increase in Q4 Net Income
The Board of Directors of ICICI also considered the consolidated US GAAP
financial statements of ICICI for the financial year ended March 31, 2000.
Net income as per US GAAP for Q4:99-2000 increased 30% to Rs. 239 crore
(US$ 55 million) compared to Rs. 184 crore (US$ 42 million) in the corresponding
quarter of the previous year. Net income as per US GAAP for the year ended
March 31, 2000 increased 26% to Rs. 908 crore (US$ 207 million) from Rs.
723 crore (US$ 166 million) in the previous year. Net income for the year
ended March 31, 2000 includes a non-recurring expense of Rs. 27 crore
(US$ 6 million) on account of the Voluntary Retirement Scheme. Net income
for these periods excludes extraordinary income and cumulative effect
of change in accounting policy. Stockholders' equity as per US GAAP increased
94% during the year to Rs. 7,091 crore (US$ 1.6 billion) at March 31,
2000.
Business Operations : Loan approvals up 37%
During the year ended March 31, 2000, ICICI's approvals increased 37%
to Rs. 44,479 crore compared to Rs. 32,371 crore in the previous year.
During the same period, ICICI's disbursements increased 34% to Rs. 25,836
crore compared to Rs. 19,225 crore in the previous year.
ICICI launched a number of pioneering financial products including intangible
asset financing in the form of 'brand financing' and floating rate leases.
ICICI's customized approach to specific client requirements has helped
it to forge relationships with several leading PSU and multinational clients.
While the infrastructure and oil & gas sectors aggregated 42% and 36%
of approvals and disbursements respectively, non-project corporate finance
assistance accounted for 41% and 47% of approvals and disbursements respectively.
Asset Quality : Decline in net NPA ratio to 7.6% at March 31, 2000
from 8.1% at March 31, 1999
ICICI's net NPA ratio as per Indian GAAP declined to 7.6% at March 31,
2000 from 8.1% at March 31, 1999. Net NPA ratio as per US GAAP was 6.2%
at March 31, 2000, down from 6.3% at March 31, 1999. During the year,
Indian industry witnessed a recovery from the cyclical downturn of the
previous two years and several key sectors of the economy were able to
achieve significant growth. ICICI continued to focus on its initiatives
in respect of recovery and settlements of problem cases. During the year
under review, ICICI settled dues aggregating Rs. 515 crore from 112 cases
(Rs. 380 crore from 100 cases in previous year). The present value of
principal dues settled was about 76% during this period.
E-Commerce initiatives
ICICI's e-commerce focus revolves around web-enabling existing businesses,
entering non-traditional high-growth businesses and investing in dot.com
companies. ICICI has launched ICICIDirect.com, India's leading stock trading
service, with over 20,000 registrations, which offers customers a single-click,
hassle free investment experience by seamlessly integrating the customer's
brokerage account, savings account and depository account. ICICI has also
launched a pioneering closed loop, Internet-based supply chain management
solution, which links corporate clients with their vendors and suppliers,
and is developing an open payment gateway.
Retail Business : Impressive market share gains
The year under review was marked by ICICI consolidating its presence
in retail asset businesses with market share gains in home loans, auto
loans and consumer durable loans. Home loans were made available at 13
geographically diverse locations, auto loans in 19 locations and consumer-durable
loans at 24 locations. ICICI expanded its retail offering through the
launch of additional retail asset products including dealer financing
and commercial vehicle loans. Further, ICICI also opened four state-of-the-art
Call Centers during the year and 75 ICICI Centres (thin physical distribution
points) to complement ICICI's electronic distribution channels.
Resources
During the year under review, ICICI mobilised rupee resources of about
Rs. 15,872 crore. Of this about Rs. 2,575 crore was raised through seven
public issues of bonds to about 10 lac retail investors.
Equity Issue
ICICI successfully completed a three-tier equity offering amounting to
about US$ 500 million in September 1999. ICICI became the first Indian
company to be listed on the New York Stock Exchange with its US$ 315 American
Depositary Shares offering. Equity shares outstanding increased 64% to
785 million at March 31, 2000 from 480 million at March 31, 1999.
Capital Adequacy
Total capital adequacy ratio increased to 17.1% at March 31, 2000 compared
to 12.5% at March 31, 1999. Tier2 capital adequacy ratio increased to
11.4% from 8.3% at March 31, 1999.
Performance of Subsidiaries
ICICI Bank's net profit in FY1999-2000 increased 66% to Rs. 105 crore
from Rs. 63 crore in the previous year. Profit after tax of ICICI Securities
in FY1999-2000 increased 263% to Rs. 72 crore from Rs. 20 crore in the
previous year. Profit after tax of ICICI Infotech in FY1999-2000 increased
249% to Rs. 11 crore from Rs. 3 crore in the previous year. ICICI Venture
registered more than 500% rise in profits in FY1999-2000 to Rs. 38 crore
from Rs. 6 crore in the previous year.
Summary Profit and Loss Statement (Indian GAAP)