The ICICI Banking Corporation Ltd is planning to raise Rs 100 crore by issuing 63 month, subordinated debt for shoring up its Tier-II capital. The bonds will carry a coupon of 13.50 per cent, payable semi annually.
The capital adequacy ratio of ICICI Bank, promoted by Industrial Credit and Investment Corporation of India (ICICI), stood at 13.48 per cent on March 31, 1998 as against 13.04 per cent in the previous year.
With the proceeds of the bond issue, the capital adequacy ratio would move up to nearly 16 per cent. A higher capital adequacy ratio is expected to help the bank to expand its loans portfolio.
ICICI Bank had posted a net profit of Rs 50.22 crore for the financial year 1997-98 as against Rs 40.12 crore in 1996-97.
The board of the bank recommended a dividend of 10 per cent, i.e. Rs one per share. Total income was Rs 344.75 crore as compared with Rs 225.30 crore in the previous year.
When ICICI Bank had gone public in August, 1997, it had forecast a net profit of Rs 55.08 crore. The actual profit was lower than the estimate because of unanticipated depreciation to the extent of Rs 12.13 crore on government securities.
By March, 1998, the banks earning per share increased to Rs 3.04 as against Rs 2.68 in the previous year. The book value has gone up from Rs 12.12 to Rs 16.17.
The return on average net worth was, however, lower at 20.77 per cent as against 23.70 per cent in the previous year.
The deposits of the bank grew by 95.09 per cent to stand at Rs 2,629.02 crore on March 31, 1998. The banks advances stood at Rs 1,127.87 crore compared with Rs 798 crore at the end of the 1996-97. The credit deposit ratio was 42.90 on March 31, 1998. If investments in credit substitute instruments like preference shares, debentures, commercial paper etc are added, and the amount of resources deployed in swap operations overseas deducted, the revised credit deposit ratio works out to 57.48 per cent.
Advances were up by Rs 329.87 crore, a growth of 41.34 per cent which was well above the industry average.
The bank has targeted credit growth of over Rs 900 crore in the current financial year.
