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Non-Tech : ICICI Ltd - (Nyse: IC) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (327)	3/7/2000 2:02:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 494

RBI slams ICICI, then says happy with the 'explanations given'. RBI slams ICICI for misstating NPAs, profits Sourav Mukherjee MUMBAI 06 MARCH It's a war of differences out there. The Reserve Bank of India's financial inspection report for 1998-99 has stirred up a hornet's nest by stating that ICICI has understated its non-performing assets (NPAs) by around 3.8 percentage points and subsequently reported a Rs 403-crore higher net profit figure among other things. The report has completely dumbfounded ICICI officials who have sent in detailed point-by-point replies to the doubts raised. They swear that RBI norms were only followed to arrive at the figures that the inspection team was now doubting. Top-level sources said that most of the confusion has arisen from the fact that some RBI guidelines can be interpreted in more than one way. "These differences are not uncommon," they said. But that hasn't stopped RBI from slamming the institution hard. In a letter accompanying the report, which was forwarded to ICICI a few months back, the FI has been asked to discuss the issue at the board level for immediate "corrective action" to "rectify" the deficiencies. The letter has been signed by RBI's executive director in the department of banking supervision G P Muniappan. These "deficiencies" have to be corrected by March 31, 2000, so that this year's account are based upon mutually agreeable numbers and methods. When contacted, RBI sources said that although ICICI has sent in its replies, the RBI has not go back to them. "We are happy with ICICI's ex-planations," they said. ICICI sources said that the institution has already clarified its stand to the RBI and its argument has "been found to be satisfactory by RBI". The RBI report has highlighted deficiencies in 10 key areas and asked ICICI to reply on each of them. ...ICICI: "As explained earlier, ICICI's provisioning has been done strictly in accordance with RBI guidelines and as such the profits of the company have been correctly reported in the financials. The detailed case by case response given by ICICI to RBI bears out this fact. It may be noted that ICICI's asset portfolio has been subjected to a detailed analysis and review by US GAAP auditors as well," ICICI sources said. economictimes.com