CONDENSED FINANCIAL STATEMENT (INR)

March 31, 1997

Directors
Chairman P. V. Maiya  
  Rajan Datar Ashok Gulati
  R. Rajamani B. V. Bhargava
Nominees of ICICI Lalita D. Gupte K. V. Kamath

 

Executives
Executive Vice Presidents A. G. Prabhu   Senior Vice Presidents Ashok Alladi
R. S. Raghavan E. S. Mohan
  P. H. Ravikumar   A. V. A. Subramaniam
  M. N. Gopinath   R. Sundaresan *
  Suresh C. Nanda *   * on deputation from ICICI
       
       
Company Secretary Bhashyam Seshan Auditors Lodha & Company
Chartered Accountants
       
Registered Office 'Landmark'
Race Course Circle,
Alkapuri
Baroda 390 018
Corporate Office Third Floor
Zenith House
Keshavrao Khade Marg
Mahalakshmi
Mumbai 400 034

 

This Condensed Financial Statement is for information only and is extracted from the full text of the Annual Report 1996-97, prepared as per provisions of the Banking Regulation Act, 1949. The Annual Accounts have been audited by Lodha & Company, Chartered Accountants, who have issued an Audit Report dated April 19, 1997 and which is included in the Annual Report. To complement this Condensed Financial Statement, we will be pleased to send the Annual Report upon request from the nearest branch or the Corporate Office of the Bank.

 

INTRODUCTION


The genesis of the Bank lay in India's liberalized financial environment

 

The New Economic Policy announced by the Government of India in July 1991 proved to be a harbinger of a liberalized domestic financial environment. In keeping with this trend, the country's central bank allowed the setting up of new private sector banks offering a high technology complement of banking services with a well capitalized base. It was in this context that the ICICI Banking Corporation Limited was established in June 1994.

 

The Bank has an authorized capital of Rs. 300 crore. It is governed by the Banking Regulation Act, 1949 and the Companies Act, 1956, among others. The Bank is a Scheduled Bank under the Second Schedule to the Reserve Bank of India Act, 1934.

 

The Bank's promoters provide institutional character and strong business support

 

Two pre-eminent All-India Financial Institutions, the Industrial Credit and Investment Corporation of India Limited and SCICI Limited which has since merged with the former, founded the Bank by contributing to the Bank's Rs. 150 crore equity capital in the ratio of 75:25. Both institutions have been catalysts in the growth of Indian industry by extending term lending facilities to domestic corporates. ICICI has also been responsible for the establishment of institutions in different financial sectors such as credit rating, investment banking, asset management, venture capital and the like. The long term strategic goal of the promoters is to be able to provide all clients of the group universal banking products under one roof.

 

The Bank has built a substantial scale of business in a short time span by leveraging its impressive reach and technology as well as developing an array of financial products for its customers.

 

The Bank offers a complete range of commercial banking products and services to customers in all its target segments.

 

The Bank's branch reach extends across 24 centres in 15 cities and 12 states. All branches are linked through Very Small Aperture Terminals (VSAT) technology, giving the Bank a powerful technology edge over its nearest competitors in terms of the service levels it can provide its customers. The Bank proposes to rapidly broaden the reach of its branch network and aggressively maintain the service differentiation derived by its high technology focus.

 

The expansion of the Bank's retail network is crucial in developing a stable resource base on which to build the Bank's future business plans. The Bank also offers its retail customers significant technology driven products, primary among them being access at all branches to Automated Teller Machines (ATMs) over and above the normal range of products offered by other commercial banks. The Bank's electronic funds transfer facility is an added attraction to all customers, individuals and corporates alike.

 

The Bank has established a reputation for its skills in corporate advances, advisory services and treasury management. The Bank is an Authorized Dealer in foreign exchange and is one of the first banks ('designated bank') allowed to maintain the accounts of Foreign Institutional Investors in India. The Bank is also a registered underwriter and can act as bankers to primary market issuances. The Bank is a member of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and consequently can provide trade related services to all its customers with unmatched speed and efficiency.

 

ICICI Bank prides itself on having developed its current scale of business with an adherence to a strong system of institutional values, ethics and customer friendliness. The scale of business of the Bank is illustrated in the table below, which details salient features of the Bank's performance for the financial year ended March 31, 1997 -

 

Performance of the Bank

 

(Rupees in crores)

Particulars For the year ended March 31, 1997 For the year ended March 31, 1996
Income

 

 

 

 

 

Interest earned

195.06

116.13

Other income

42.62

24.92

Total

237.68

141.05

 

Expenditure
Interest expended

129.46

84.91

Operating expenses of which -
- Payment and provisions to employees
- Rent and infrastructural expenses
- Depreciation on Bank's property
- Other operating expenses

40.49
(6.17)
(14.07)
(8.24)
(12.01)

27.45
(4.49)
(11.67)
(4.51)
(6.78)

Provisions and contingencies

27.60

12.18

 

 

 

Total

197.55

124.54

Net profit (Profit after tax) 40.13 16.51

 

Particulars As at March 31, 1997 As at March 31, 1996
Capital and Liabilities

 

 

Capital

150.00

150.00

Reserves and surplus

31.88

6.75

Deposits

1,347.60

729.90

Borrowings

92.99

208.99

Other liabilities and provisions

159.40

61.48

 

 

 

Total

1,781.87

1,157.13

 

Assets
Cash and balances with Reserve Bank of India

150.34

104.27

Balances with other banks and money at call and short notice

222.58

58.69

Investments

435.35

262.77

Advances

798.00

650.75

Fixed assets

96.37

46.49

Other assets

79.23

34.16

 

 

 

Total

1,781.87

1,157.13

 

Net Worth 181.88 156.75
Capital Adequacy Ratio (%) 13.04 17.52
Return on Average Net Worth (%) 23.70 12.52
Return on Average Assets (%) 2.73 2.05
Dividend (Rupee per equity share) 1.00 0.80
Number of offices 24 12
Number of employees 445 297