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News Release
January 28, 2000
ICICI Q3:99-2000 - Profit After
Tax Up By 27%
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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
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Q3:1998-99
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Q3:1999-00
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Growth%
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Apr-Dec
1998
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Apr-Dec 1999
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Growth%
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FY:98-99
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Fund based income
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1,773
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2,116
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19.3
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5,145
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6,067
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17.9
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7,031
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Less : Interest and depreciation charges
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1,431
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1,645
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14.9
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4,128
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4,759
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15.3
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5,638
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Net fund based income
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342
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472
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37.8
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1,017
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1,308
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28.6
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1,393
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Add : Fees and commissions
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50
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65
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30.2
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175
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205
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17.1
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311
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Net income from operations
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392
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537
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36.8
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1,192
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1,513
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26.9
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1,704
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Less : Operating expenses
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52
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72
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40.4
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156
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214
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37.4
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226
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Profit from operations
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341
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464
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36.3
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1,036
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1,299
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25.3
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1,478
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Add : Other income*
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7
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4
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(44.6)
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59
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15
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(74.2)
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90
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Profit before provisions and tax
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348
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469
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34.6
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1,095
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1,314
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20.0
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1,568
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Less : Provisions and write-offs
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114
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189
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66.1
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302
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435
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44.3
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472
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- For loans & debentures
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88
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135
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52.9
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241
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324
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34.6
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364
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- For investments
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26
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54
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111.3
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61
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111
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82.8
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108
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Profit before tax
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234
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280
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19.3
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793
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879
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10.7
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1,096
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Less : Provision for tax
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21
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27
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30.5
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72
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87
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19.2
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95
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Profit after tax
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213
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252
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18.1
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721
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792
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9.9
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1,001
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Add : Extraordinary gains
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-
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19
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-
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-
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19
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-
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-
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Profit after tax (including extraordinary gains)
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213
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271
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27.2
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721
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811
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12.6
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1,001
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*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
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Dec
31, 1998
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Dec
31, 1999
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Growth%
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Mar
31, 1999
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Net loans and
debentures
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40,895
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45,183
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10.5
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42,010
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Other Investments
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2,514
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3,114
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23.9
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2,598
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Current assets
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9,142
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11,512
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25.9
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9,903
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Fixed assets
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3,164
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4,433
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40.1
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3,717
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Miscellaneous
expenditure
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285
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315
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10.4
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319
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Total assets
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56,000
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64,557
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15.3
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58,547
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Shareholders'
equity and reserves
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5,228
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8,016
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53.3
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5,135
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Of which : Equity
capital
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480
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768
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60.0
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480
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Preference capital
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1,229
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1,308
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6.4
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1,383
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Borrowings
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45,691
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50,799
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11.2
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47,659
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Current liabilities
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3,852
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4,434
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15.1
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4,370
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Total liabilities
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56,000
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64,557
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15.3
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58,547
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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
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