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

To: Mohan Marette who wrote (341)	3/8/2000 8:43:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 494

Point Blank by Anirudha Dutta - On ICICI,RBI and Biz-rags. March 08, 2000 ICICI & RBI: More to it than meets the eye? It rarely is the case that all the major finance newspapers carry the same top story on a particular day, unless it is linked to a specific event like the Budget. Hence, it was surprising to see on Tuesday (07th March 1999) the story on "RBI indicting ICICI" on NPAs and profits the top story in every newspaper. Many close observers of the FI have been convinced for long that ICICI overstates its profits and understates its NPAs. The NPAs in the steel sector alone, which continue to be shown as good assets, would be enough to wipe out a significant portion of the company?s net worth. In years when the industry and economy were performing badly, ICICI continued to report some surprising growth numbers when the rest of the banking and financial services industry stumbled. ICICI has chosen the strategy of aggressive growth of assets in order to keep showing low NPAs in recent times. Such aggressive growth has obviously meant that some laxity has crept into the system, as the RBI report seems to indicate. ICICIs performance and its accounting policies are of keen interest to investors ? both domestic and foreign. Should it not be made mandatory that FIs and banks must carry a summary of the RBIs audit alongwith management?s explanation? In fact in the India Infoline debate, sometime back, the Bear had pointed out how ICICI has been shifting its focus area almost year after year ? project finance, merchant banking, mid-size companies, infrastructure projects, e-broking, e-commerce and now retail financing. Its aggressive acquisition of retail assets as has been reported in the press recently may be a cause for concern a few years down the line. However, this article is not about whether RBI is right or ICICIs management is right. Firstly, it is how a confidential report of RBI leaks out to all newspapers on the same day and is front-page story the next day? This was not a regular publication of RBI like "Trends and Progress in Banking" or any such report, which is available to the general public. Is there then more to it than meets the eye? Is it that some people deliberately wanted ICICI share price to be hammered down for a few days ? either to get out of a sticky short position or get into the stock? In the last one month it has been heard often that ICICI group shares would get into bull frenzy as they have become part of the KP stocks. Is this part of a bigger game plan? Remember that ICICI Bank's ADR is getting priced now. Are operators propping up ICICI Banks share price? These are questions, which the regulator can possibly try and find answers to. Secondly, I am sure that RBI would have had something equally non-flattering to say about IDBI, SBI and IFCI ? if ICICIs accounting is like this imagine what IFCI must be doing to stay afloat. How come none of the newspapers had anything to say on RBIs comments on IDBI, SBI and IFCI? -indiainfoline

To: Mohan Marette who wrote (341)	3/8/2000 9:31:00 AM
From: arin8192	Read Replies (1) \| Respond to of 494

Mohan, Thanks again for all the great posts! I've left you posts on the SIFY board and I'm also very long on KOREA. Just added IC to my portfolio. This looks to be a very exciting play. I think there is a lot of confusion with IC and the secondary ADR's coming and perhaps a different listing on the NYSE, not to mention the venture capital side of their business. Can you take a moment and make a little summary of what is happening?! I've read countless posts and done my research but still a little confused. Your reply is greatly appreciated! Thanks, Arin