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ICICI net higher in first quarter

The Industrial Credit and Investment Corporation of India Limited has posted net profit of Rs 2.61 billion for the first quarter ended June 30, 1998 as against Rs 1.86 billion reported during the corresponding period in the previous year.

Profit after tax of Rs 1.86 billion for first quarter of 1998 comprises ICICI's reported profit of Rs 2.23 billion (audited) and attributable loss of Rs 370 million (unaudited) of the erstwhile ITC Classic, which has merged with ICICI effective April 1, 1997.

The board of directors of ICICI in a meeting held in Bombay today approved the audited accounts of ICICI for the first quarter ended June 30, 1998.

The growth momentum achieved by ICICI during the financial year 1998, will be continued in first quarter-1999 with approvals aggregating Rs 91.35 billion (140 per cent increase) and disbursals aggregating Rs 42.25 billion (53 per cent increase).

In line with the corporation's business focus, approvals and disbursals to the infrastructure sector comprised 33 per cent and 21 per cent respectively, while corporate loan assitance comprised 30 per cent of approvals and 35 per cent of disbursals.

Fee and commission income registered a strong growth of 113 per cent during the quarter period ended 1999.

The net NPA ratio of ICICI decreased from 7.6 per cent as on March 31, 1998 to 7.4 per cent as on June 30, 1998. ICICI over the last quarter continued its efforts in improving asset quality in this regard, special efforts have been initiated towards early identification and subsequent follow-up in difficult accounts, the statement stated.

In respect of impaired assets acquired by ICICI consequent to the merger of ITC Classic, settlements aggregating about Rs 350 million have been reached till date. It may be recalled that ITC Limited had brought in Rs 3.50 billion as preference capital in lieu of loss of assets and therefore any recovery on these assets translates into a net financial gain for ICICI.

During the three-month period ended June 30, 1998, ICICI mobilised resources of about Rs 41 billion. This comprised on-tap wholesale rupee resources of about Rs 37 billion which included Rs 1.5 billion through a structured private placement of preference shares. ICICI also mobilised Rs 4.32 billion through a public issue of bonds.

Capital adequacy ratio was at a healthy 12.4 per cent as on June 30, 1998 of which tier-1 capital accounted for 9.3 per cent.

ICICI has reorganised its corporate business operations into two lead groups for conducting existing businesses and has created a new business group for marketing of retail assets. This is expected to ensure better client coverage and would result in better cross-selling of products across the group companies.

UNI