ICICI Bank Limited
ICICI Towers
Bandra Kurla Complex
[Logo] ICICI Bank Mumbai 400 051
================================================================================
News Release October 19, 2000
ICICI Bank: Growth in retail deposits and fee income drive H1: FY 2001
performance
The Board of Directors of ICICI Bank (NYSE : IBN) at its meeting held in Mumbai
today, approved the audited accounts for the half year ended September 30, 2000
(H1: FY2001).
Results : 59 per cent increase in H1 Profit after Tax driven by 154 per cent
increase in Net Interest Income and doubling of core fee income
Profit after tax for H1 : FY2001 increased 59 per cent to Rs. 70.20 crores as
compared to Rs. 44.10 crores in the corresponding period of the previous year.
During H1 : FY2001, operating profit increased 62 per cent to Rs. 120.41 crores
as compared to Rs. 74.11 crores in the corresponding period of the previous
year. The growth in PAT was driven by a significant 154 per cent increase in
Net Interest Income and a 103 per cent increase in fee income.
Net Interest Income has increased to Rs. 181.35 crores as compared to Rs.71.50
crores during the corresponding period of the previous year primarily on
account of various retail initiatives which has resulted in lower cost of
deposits. While interest income went up year on year (yoy) by 47 per cent,
interest expense grew by just 23 per cent. Interest spread has improved to 2.72
per cent during H1 : FY2001 from 2.30 per cent in FY2000.
Core Fee income has increased to Rs. 55.93 crores as compared to Rs. 27.56
crores during the corresponding period of the previous year. This has been
aided by a robust growth in cash management services and non-fund business of
the Bank.
Resource generation powered by a strong retail thrust leading to a significant
reduction in cost of deposits
Deposits and customer assets have increased to Rs. 9,728 crores and Rs. 6,324
crores respectively as compared to Rs. 6,580 crores and Rs. 3,415 crores in
September 1999 registering yoy growth of 48 per cent and 85 per cent
respectively. The period under review was marked by a powerful retail thrust
resulting in retail deposits now constituting 48 per cent of total deposits as
compared to 31per cent as on March 31, 2000.
<PAGE>
ICICI Bank Limited
ICICI Towers
Bandra Kurla Complex
[Logo] ICICI Bank Mumbai 400 051
================================================================================
Rapid Customer Acquisition : 95 per cent increase in retail customer accounts
during H1 : FY2001 to 1.25 million retail customers
ICICI Bank's successful customer acquisition strategy has increased retail
customer accounts to 12,45,000 from 6,37,000 at March 31, 2000. Savings Bank
accounts have gone up to 5,73,000 from 2,92,000 and NRI accounts to 40,000 from
23,500 at March 31, 2000. ICICI Bank is now the face of ICICI group and there
is a seamless cross-selling of group products, to corporates and to retail
segment covering life-cycle of individuals.
Staggering response from on-line customers with 150 per cent increase in
Internet customers
ICICI Bank, which pioneered Internet Banking in India, has seen a staggering
150per cent increase in Internet customers from 1,10,000 as on March 31, 2000
to 2,75,000 as on September 30, 2000. This sharp increase was facilitated by
significant enhancements in the product portfolio offered through `Infinity',
the internet banking platform of the Bank.
Consolidating India's only multi-channel technology architecture
As part of its 'Clicks and Bricks' strategy, ICICI Bank has developed multiple
access channels comprising lean brick and mortar branches, ATMs, call centers
and Internet banking. The branch network including extension counters presently
covers 102 locations across India. ICICI Bank is India's largest ATM provider
with 311 ATMs. ICICI Bank has added call centres at 10 cities during the six
month period ended September 30, 2000. The call centres currently handle 7,000
calls a day.
Asset Quality
Net NPA ratio as at September 30, 2000 stood at 1.33 per cent
Investments
Considering the systemic change in the Indian Securities market, and the need
to create a long-term and risk-free asset portfolio to match the maturity
profile of rapidly increasing longer term retail liabilities, we have
re-categorised part of our trading assets as 'Available for Sale' and 'Held to
Maturity' securities as at September 30, 2000
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<PAGE>
ICICI Bank Limited
ICICI Towers
Bandra Kurla Complex
[Logo] ICICI Bank Mumbai 400 051
================================================================================
Capital Adequacy
The Bank's capital adequacy ratio stood at 17.59 per cent as at
September 30, 2000.
Results under US GAAP
For the six-month period ended September 30, 2000, the Net-Income remained flat
at Rs. 606.8 million. The Net Interest Income after provision for credit losses
increased by 169 per cent to Rs. 1,505 million from Rs. 559 million in the
corresponding period of the previous financial year.
For further queries on results, contact :
P. H. Ravikumar - (91)-22-653 8413 or 653 8433
G. Venkatakrishnan - (91)-22-653 8516 or 653 8529
Mohan N. Shenoi - (91)-22-653 8418 or 653 8487
For investor queries, contact:
Bhashyam Seshan
Phone: (91)-22-653 8420 or 653 7460
e-mail: [email protected]
Note: (a) Rs. = Indian Rupees (b) 1 crore = 10 million
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Except for the historical information contained herein, statements in this
Release which contain words or phrases such as 'will', 'would', 'aim',
'likely', 'will likely result', 'believe', 'expected', 'will continue',
'anticipate', 'estimate', 'enable', 'enabling', 'intend', 'plan',
'contemplate', 'seek to', 'future', 'objective', 'goal', 'project',
'should', 'will pursue' and similar expressions or variations of such
expressions may constitute 'forward-looking statements'. These
forward-looking statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially from
those suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to our and ICICI's Group's
ability to obtain statutory and regulatory approvals and to successfully
implement our strategy, future levels of non-performing loans, our growth
and expansion in business, the adequacy of our allowance for credit
losses, technological implementation and changes, the actual growth in
demand for banking products and services, investment income, cash flow
projections, our exposure to market risks as well as other risks detailed
in the reports filed by us with the United States Securities and Exchange
Commission. The Bank undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date thereof.
October 19, 2000
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