Performance Review - Quarter ended June 30, 1999
The Board of Directors of ICICI at its meeting held in Mumbai today,
approved the audited accounts of ICICI for the quarter ended June 30,
1999.
During the first quarter ended June 30, 1999, the profit before tax and
provisions (including write-down of equity investments) was Rs. 402 crore
as compared to Rs. 363 crore in the corresponding quarter previous year,
registering a growth of 11%. Notwithstanding the enhanced provisions and
write-offs of Rs. 113 crore in the quarter ended June 30, 1999 compared
to Rs. 78 crore in the corresponding quarter previous year, profit after
tax in the quarter ended June 30, 1999 increased to Rs. 262 crore from
Rs. 258 crore in the corresponding quarter previous year.
Profit after tax of Rs. 258 crore for quarter ended June 30, 1998, comprises
ICICI's reported profit of Rs. 261 crore and attributable loss of Rs.
3 crore of erstwhile Anagram Finance which was merged with ICICI effective
April 1, 1998.
Business Operations
During the quarter ended June 30, 1999, ICICI's approvals aggregated
Rs. 12,561 crore, as against Rs. 8,922 crore for the previous year, thereby
registering a 41% growth. During the same period, ICICI's disbursals aggregated
Rs. 4,422 crore, as against Rs. 4,225 crore for the previous year, indicating
a growth of 5%.
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
project finance assistance accounted for 73% of total approvals and 64%
of total disbursals, and the balance comprised corporate finance assistances.
Of the project finance assistance, large structured project finance transactions
accounted for 60% and 49% of aggregate approvals and disbursals respectively.
In line with ICICI's strategy of providing funding across the maturity
spectrum, during the quarter ended June 30, 1999, STPR (Short Term Prime
Rate) and MTPR (Medium Term Prime Rate) related disbursals accounted for
18% and 12% of total disbursals, respectively. However, long term funding
continues to be the primary activity of ICICI with LTPR (Long Term Prime
Rate) related loans accounting for 45% of total disbursals. Foreign currency
loans were 12%. The balance 13% of total disbursals comprised deferred
credit, leasing, asset credit, personal finance and other forms of assistance.
Asset Quality
The net NPA ratio declined from 7.8% as on March 31, 1999 to 7.6% as
on June 30, 1999. The net NPAs outstanding was Rs. 3,564 crore as on June
30, 1999. The decrease in NPA ratio is on account of the greater emphasis
placed on recovery and settlements in respect of bad assets and the proactive
approach towards cases under stress.
ICICI is following an aggressive approach towards tackling the NPA problem
including focussed recovery efforts on existing NPA cases and increased
monitoring of stress cases. The aggressive recovery initiated by ICICI
during the period under review resulted in an improved performance with
settlement of dues aggregating Rs. 72 crore (Rs. 50 crore in the corresponding
period last year). The Special Asset Management Group is driving ICICI's
initiatives on recovery and settlements in large cases. ICICI has stepped
up its litigation action against recalcitrant promoters. During the quarter
under review 66 recovery suits were filed aimed at expeditious enforcement
of collateral. This has resulted in several companies coming forward with
one-time settlements.
Resources
During the quarter ended June 30, 1999, ICICI mobilised medium and long-term
rupee resources of Rs. 2,164 crore. During this quarter ended June 30,
1999, ICICI mobilised Rs. 329 crore through one public issue of bonds.
Capital Adequacy
Capital adequacy ratio was 12.8% as on June 30, 1999, of which Tier2
capital accounted for 8.5%.
Summary Profit and Loss Statement
Figures in Rs.crore