Industrial Credit and Investment Corporation of India (ICICI) has posted a net profit of Rs 831 crore at the end of the third quarter of the current fiscal, an increase of 71 per cent over the corresponding period in 1996-97. ICICIs net profit for the first nine months of 1997-98 has surpassed its earnings for the whole of 1996-97, which stood at Rs 770 crore.
The ICICI board, which met in Chennai yesterday to approve the third-quarter results, did not take any decision on revising lending or borrowing rates. We are observing the developments in the market and would be announcing revised rates in a few days, said ICICI officials.
Merchant bankers point out that ICICI has hiked the interest rate on its on-tap issue from 12.75 per cent to 13.25 per cent for bonds with a maturity of five years.
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ICICIs asset base has shot up to Rs 43,918 crore as on December 31, 1997, against Rs 33,755 crore in the corresponding period last year and Rs 36,267 crore for the entire 1996-97.
ICICIs increase in profit includes capital gains (after tax) of about Rs 84 crore through sale of ICICI Bank shares and Rs 14 crore through sale of real estate. Excluding this income, the profit after tax is Rs 733 crore, reflecting a growth of 51 per cent over the corresponding period last year.
Fees and commission income jumped 50 per cent to Rs 122 crore against Rs 81 crore in the same period last year, surpassing the Rs 120 crore earned in 1996-97.
There was a marginal decline in the level of non-performing assets (net of provisioning and write-offs). As on December 31, 1997, NPAs were marginally lower at 7.6 per cent of loan assets, against 7.7 per cent at the end of the first half. The capital adequacy ratio was 13.1 per cent against the stipulated 8 per cent.
Disbursals have grown 46 per cent to Rs 10,929 crore, from Rs 7,747 crore during the previous nine-month period. With the inclusion of guarantee assistance, the growth in disbursement works out to 48 per cent at Rs 12,529 crore. Approvals have risen 112 per cent to Rs 18,223 crore, against Rs 8,593 crore in the corresponding period of the previous fiscal.
ICICI said it has developed expertise in structuring limited resource project financing transactions in the core sectors. ICICIs share in approvals and disbursal to this sector among the three term lending banks the other two being IDBI and IFCI was 43 per cent and 57 per cent, respectively . The infrastructure sector accounted for 32 per cent of ICICIs aggregate approvals and 24 per cent of its disbursals.
Analysts said ICICIs performance had exceeded expectations. They (ICICI) should end the year on a strong note, said one. However, the growth numbers may not be as high as in the fourth quarter of 1996-97. Given the tight liquidity growth may slow down marginally if availability and cost of funds is adversely affected.
ICICIs EPS has jumped 40 per cent to Rs 19.2 from Rs 13.7 in December 1996. However, the scrips price declined by 4 per cent on the NSE to close at Rs 79.60 yesterday , against the previous close of Rs 82.95.