ICICI Bank has reported a negative mismatch--maturing liabilities exceed maturing assets--of Rs 20,448.51 crore for a period of up to three years.
However, after three years, ICICI Bank's maturing assets are more than its maturing liabilities by as much as Rs 29,922.77 crore, the bank said in its annual report for 2001-2002, its first after the merger of former financial institution ICICI into ICICI Bank.
A negative mismatch implies that its cash outflow, arising out its maturing liabilities, are more than the cash that it expects from its assets. While its liabilities include deposits and other borrowings, assets include both loans and investments in securities.
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A negative mismatch means that ICICI Bank is funding its long-term assets out of short term liabilities, and that it will necessarily have to raise fresh money to keep its assets funded.
For maturities of up to one year the bank has shown a negative mismatch of Rs 13,983.74 crore while for maturities of one to three years the mismatch is Rs 6,464.77 crore. The bank has a positive mismatch for maturities of above five years at Rs 22,265.31 crore while between three and five years this is Rs 7657.46 crore.
In the case of assets and liabilities denominated in foreign exchange, for maturities of above three years, there is a negative mismatch of Rs 228.92 crore, while for maturities of up to three years the negative mismatch is Rs 1,184.42 crore.
Last year, the erstwhile ICICI had assets of Rs 19,679 crore against a maturing liability of Rs 26,352 crore in the "less than one year" bracket.