Earnings details ----->
ICICI Q3:99-2000 - Profit After Tax Up By 27%
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 ($60 mil) (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 ($7.3 bil), 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 ($3.9 bil) 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 Tier-1 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.
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