Item 2
ICICI Limited
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 (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, 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 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.
*Comprises ICICI's reported profit of Rs. 726 crore and attributable loss of Rs.
5 crore of erstwhile Anagram Finance which was merged with ICICI effective April
1, 1998.
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.
Summary Profit and Loss Statement (Indian GAAP)
Rs. crore
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Q3: Q3: Growth Apr-Dec Apr-Dec Growth FY:98-99
1998-99 1999-00 % 1998 1999 %
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Fund based income 1,773 2,116 19.3 5,145 6,067 17.9 7,031
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Less : Interest and 1,431 1,645 14.9 4,128 4,759 15.3 5,638
depreciation charges
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Net fund based income 342 472 37.8 1,017 1,308 28.6 1,393
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Add : Fees and commissions 50 65 30.2 175 205 17.1 311
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Net income from operations 392 537 36.8 1,192 1,513 26.9 1,704
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Less : Operating expenses 52 72 40.4 156 214 37.4 226
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Profit from operations 341 464 36.3 1,036 1,299 25.3 1,478
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Add : Other income* 7 4 (44.6) 59 15 (74.2) 90
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Profit before provisions 348 469 34.6 1,095 1,314 20.0 1,568
and tax
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Less : Provisions and 114 189 66.1 302 435 44.3 472
write-offs
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- - For loans & debentures 88 135 52.9 241 324 34.6 364
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- - For investments 26 54 111.3 61 111 82.8 108
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Profit before tax 234 280 19.3 793 879 10.7 1,096
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Less : Provision for tax 21 27 30.5 72 87 19.2 95
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Profit after tax 213 252 18.1 721 792 9.9 1,001
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Add : Extraordinary gains - 19 - - 19 - -
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Profit after tax (including 213 271 27.2 721 811 12.6 1,001
extraordinary gains)
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*Other income for Apr-Dec 1998 and FY: 1998-99 includes profit on account of repurchase of
foreign currency bonds of Rs. 38 crore and Rs. 45 crore, respectively.
Summary Balance Sheet (Indian GAAP) Rs. crore
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Dec 31, 1998 Dec 31, 1999 Growth % Mar 31, 1999
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Net loans and debentures 40,895 45,183 10.5 42,010
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Other Investments 2,514 3,114 23.9 2,598
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Current assets 9,142 11,512 25.9 9,903
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Fixed assets 3,164 4,433 40.1 3,717
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Miscellaneous expenditure 285 315 10.4 319
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Total assets 56,000 64,557 15.3 58,547
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Shareholders' equity and reserves 5,228 8,016 53.3 5,135
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Of which : Equity capital 480 768 60.0 480
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Preference capital 1,229 1,308 6.4 1,383
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Borrowings 45,691 50,799 11.2 47,659
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Current liabilities 3,852 4,434 15.1 4,370
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Total liabilities 56,000 64,557 15.3 58,547
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Except for the historical information contained herein, statements in this
release which contain words or phrases such as "will", "aim", "will likely
result", "believe", "expect", "will continue", "anticipate", "estimate",
"intend", "plan", "contemplate", "seek to", "future", "objective", "goal",
"project", "should", "will pursue" and similar expressions or variations of such
expressions may constitute "forward-looking statements". These forward-looking
statements involve a number of risks, uncertainties and other factors that could
cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not
limited to our ability to successfully implement our strategy, future levels of
non-performing loans, our growth and expansion, the adequacy of our allowance
for credit losses, technological changes, investment income, cash flow
projections, our exposure to market risks as well as other risks detailed in the
reports filed by ICICI Limited with the Securities and Exchange Commission of
the United States. ICICI undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date thereof.
January 28, 2000
For further investor queries:
Contact: A.P Singh at 91-22-653 6262 or email at singhap@icici.com
END