The Board of Directors of ICICI
Bank Limited, at its meeting held at Mumbai today, approved the
audited accounts of the Bank for the nine months ended December 31, 2001
(Apr-Dec 2001). The Board of Directors has approved an interim dividend of Rs.
2.00 per share, subject to the approval of Reserve Bank of India (RBI). The
Board also approved the unaudited US GAAP financial statements of the Bank for
Apr-Dec 2001. Consequent to the amalgamation of Bank of Madura Limited with
ICICI Bank effective March 10, 2001, the financial statements for Apr-Dec 2001
reflect the operations of the merged entity.
The highlights of ICICI Bank’s performance during Apr-Dec 2001 compared to the
nine months ended December 31, 2000 (Apr-Dec 2000) are:
— Profit after tax as per Indian GAAP increased 82% to Rs. 201 crore;
— Return on average net worth increased to 19.33% (annualised) from 12.25%;
— Earnings per share increased to Rs. 12.19 (annualised) from Rs.7.50; and
— Net income as per US GAAP increased 77% to Rs. 175 crore.
– Results under Indian GAAP
The profit after tax increased 73% to Rs. 70 crore in the quarter ended
December 31, 2001 (Q3-2002) from Rs. 41 crore in the quarter ended December
2000 (Q3-2001). The profit after tax increased 82% to Rs. 201 crore in Apr-Dec
2001 from Rs. 111 crore in Apr-Dec 2000. Net interest income increased 61% to
Rs. 449 crore from Rs. 279 crore. Operating expenditure increased 106% to Rs.
439 crore from Rs. 213 crore, primarily due to the expenses on refurbishment
and automation of branches after the acquisition of Bank of Madura Limited.
Progress on Merger of ICICI Limited (NYSE: IC), ICICI Personal Financial
Services and ICICI Capital Services with ICICI Bank
The progress on the merger has been in line with the expected timeframe. The
Scheme of Amalgamation (`the Scheme”) has been filed with the High Court of
Judicature at Bombay and the High Court of Gujarat at Ahmedabad. An
Extraordinary General Meeting of ICICI Bank shareholders has been convened on
January 25, 2002, and of ICICI shareholders on January 30, 2002, to consider
the Scheme. Discussions with RBI on the proposal for the merger and the merged
entity’s compliance with regulatory norms applicable to banks are in progress.
Plans for integration of the operations of the four companies are also
progressing satisfactorily. As provided in the Scheme, the Appointed Date for
the merger shall be March 30, 2002, or the date from which RBI’s approval
becomes effective, whichever is later.
Total deposits increased to Rs. 22,920 crore at December 31, 2001, from Rs.
17,515 crore at September 30, 2001 and Rs. 16,378 crore at March 31, 2001.
Retail deposits continued to constitute 60% of total deposits at December 31,
2001 (61% at March 31, 2001), reflecting ICICI Bank’s successful retail thrust
and the benefits arising from the acquisition of Bank of Madura. Savings
deposits registered a robust growth of 130% to Rs. 2,332 crore from Rs. 1,007
crore at December 31, 2000. The average cost of deposits in Apr-Dec 2001 was
7.28% as compared to 7.93% in Apr-Dec 2000.
ICICI Bank has substantially increased its investments in Government
(“SLR portfolio”). At December 31, 2001, ICICI Bank’s SLR portfolio was Rs.
12,732 crore, an increase of Rs. 7,278 crore from September 30, 2001.
The ratio of net non-performing assets (NPAs) to customer assets was 1.36% at
December 31, 2001 compared to 1.44% at March 31, 2001. The provisioning cover
against NPAs was 65% at December 31, 2001. The Bank also maintains a general
provision of 0.50% on standard assets and a provision for operational risks at
0.50% of the paid-up capital. ICICI Bank’s total capital adequacy ratio at
December 31, 2001 was 14.06%, of which Tier I capital constituted 10.99%.
Multi-channel driven retail customer expansion
During Apr-Dec 2001, the Bank added about 1.5 million new customer accounts,
taking the total customer accounts to 4.7 million. To efficiently distribute
its products and services, ICICI Bank has developed multiple access channels
comprising brick and mortar branches, automated teller machines (ATM), call
centers and Internet banking. Currently the Bank has a network of 357 branches
and 44 extension counters. Its network of 731 ATMs is the largest for any bank
in the country. The bank has over one million Internet banking accounts.
Customers in 100 cities can now access account information over the telephone.
These investments in channel infrastructure have enabled ICICI Bank to achieve
rapid growth in its retail business.
ICICI Bank is one of the largest incremental issuers of cards in India, with a
credit card base of over 500,000 and a debit card base of over 430,000. ICICI
Bank now has a total card base of over 2.5 million including ATM cards, credit
cards, debit cards and smart cards. ICICI Bank has also commenced its
business in three cities, and launched two co-branded credit card programmes.
Results under US GAAP
ICICI Bank’s net income increased 77% to Rs. 175 crore in Apr-Dec 2001 from
99 crore in Apr-Dec 2000. Net interest income increased 63% to Rs. 454
Apr-Dec 2001 from Rs. 279 crore in Apr-Dec 2000.
The summary of the audited accounts for Apr-Dec 2001 under Indian GAAP and the
unaudited accounts under US GAAP are enclosed.
Payment of interim dividend
The Record Date for ascertaining the shareholders eligible to receive interim
dividend, is proposed to be fixed for Thursday, February 28, 2002, subject to
approval of the Vadodara Stock Exchange Limited, the regional stock exchange
for the Bank. The interim dividend would be paid on receipt of the necessary
approval of the Reserve Bank of India.
Appointment of a new Director
The Board of Directors of the Bank has appointed Mr. P. M. Sinha as an
Additional Director on the Board, with immediate effect. Mr. Sinha is the
Chairman of PepsiCo India Holdings Limited and the President of Pepsi Foods
Limited. Mr. Sinha is an alumnus of the Massachusetts Institute of
Sloan School of Management, and has previously worked with Hindustan Lever
Limited. Mr. Sinha brings to the Board wide experience in marketing and
international trade. The Board now comprises 11 Directors, of whom 3 are