ICICI Bank has replaced Rs 7,000 crore of high-cost borrowings of the erstwhile ICICI with bank deposits.
The bank plans to replace another Rs 16,000 crore of borrowings with low costs deposits.
Said ICICI Bank's executive director Kalpana Morparia, "Most of the high costs borrowings were bonds. The average costs of these borrowings were at 10.5 to 11 per cent while the average costs of deposits for the bank is at 7.5 per cent."
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The deposits of the bank for the first quarter was at Rs 33,349.22 crore as against Rs 32,085.11 crore in March 31,2002. The advances of the bank have also reduced to Rs 46,986.91 crore in the first quarter as against Rs 47,034.86 crore in March 31, 2002.
"The bank had been churning its portfolio. It has sold Rs 2,000 crore of its portfolio in the first quarter which included a small portfolio of home loans. We have not been growing our corporate and project finance and it has declined by about Rs 2,800 crore during the period. The bank has been more of an arranger and syndicator in the project finance business while keeping only a small part with itself," Morparia pointed out.
She added, "The focus of the bank is on retail. The retail finance portfolio including the assets of ICICI Home Finance has now increased to 10 per cent of total assets as against 8 per cent at the end of last year. Around 45 per cent of the retail assets are home loans."
The total retail approvals and disbursements during the quarter was at Rs 4,050 crore and Rs. 3,300 crore, respectively.
The bank distributed third party investment products of about Rs 3,700 crore. It has also commenced its international operations during the quarter with the opening of representative offices in London and New York.