EXHIBIT 2
News Release July 20, 2000
Performance Review for the three-month period ended June 30, 2000
ICICI Bank reports a near doubling of its net profits for the first
quarter of this fiscal. The net profit was Rs. 40.14 crores as compared to
Rs. 20.25 crores for the corresponding period in the previous financial
year.
The Board of Directors of the ICICI Bank Limited (NYSE Code : IBN) met in
Mumbai, India, on July 20, 2000 and adopted the audited financial results
drawn up as per the accounting standards followed in India for the
three-month period ended June 30, 2000. The Board of Directors also took
on record the Bank's unaudited financials prepared under the United States
Generally Accepted Accounting Principles (US GAAP) for the same period.
Results as per the accounting standards followed in India
For the first quarter ended June 30, 2000, the net interest income showed
an increase of over 124 per cent at Rs. 85.37 crores (previous year
corresponding period - Rs. 38.09 crores). Interest income increased by 43
per cent to Rs. 283.56 crores (previous year corresponding period - Rs.
198.92 crores). Overall, other income recorded a growth of 34 per cent to
Rs. 31.23 crores (previous year corresponding period - Rs. 23.28 crores),
aided by fee income growth of 101 per cent. During the quarter, backed by
its increased net worth, the Bank reshuffled the composition of its
deposits by gradually liquidating higher-cost deposits leading to an
improvement in interest rate spreads. Interest expenditure increased by 23
per cent to Rs. 198.19 crores (previous year corresponding period -
Rs.160.83 crores). Operating profit increased 71 per cent to Rs. 61.87
crores compared to Rs. 36.21 crores of the corresponding period in the
previous year. The Return on Average Assets (RoAA) stood at 1.46 per cent
for the quarter.
Total deposits as at June 30, 2000 stood at Rs. 8,740 crores as against
Rs. 5,954 crores as at June 30, 1999 and Rs. 9,866 crores at March 31,
2000. Total customer assets (including credit substitutes) were at Rs.
5,361 crores, compared to Rs. 3,449 crores at June 30, 1999 and Rs. 5,031
crores at March 31, 2000.
<PAGE>
The Bank has provided for depreciation on investments, and provision for
bad debts and standard assets as per the guidelines of the Reserve Bank of
India. The ratio of net non-performing assets to total customer assets
remained more or less unchanged at 1.16 per cent on June 30, 2000 as
against 1.14 per cent on March 31, 2000. The Bank's capital adequacy ratio
stood at 19.24 per cent of the risk-weighted assets on June 30, 2000.
Results under US GAAP
For the three-month ended June 30, 2000, the Net-Income for the period
increased by 69 per cent to Rs. 44.60 crores from Rs. 26.40 crores. The
net interest income after provision for credit losses increased by 159 per
cent to Rs. 77.70 crores from Rs.30.00 crores in the corresponding period
of the previous financial year.
Significant growth in customer accounts
During the first quarter, the Bank added more than 225,000 new customer
accounts, including about 100,000 savings bank accounts and ended the
quarter with about 875,000 accounts. The number of savings accounts stood
at around 400,000. The number of accounts of non-resident Indians
increased to about 28,000 and the number of Internet banking customers
increased during the quarter from 110,000 to over 155,000. The retail
deposits at Rs. 3,663 crores constituted 42 per cent of the total deposits
of the Bank.
Technology driven distribution and product strategy
The Bank continued to leverage its strengths in the use of modern banking
technology to further improve its customer service. Initiatives in this
regard included launch of new products, such as bank@campus for students
and kid-e-bank for small children, in line with the Bank's strategy to be
associated in all stages of a person's life cycle. Both these products are
web-enabled and offer many innovative and attractive features to the
target customers. The Bank's web-enabled credit cards launched during
January 2000 have received a good response. The Bank issued an additional
19,000 credit cards during the three-month period ended June 30, 2000
taking the total number of cards issued to around 30,000.
The Bank has concluded arrangements with various service providers and
along with other companies in the ICICI group, offers its customers a
suite of banking and utility products through the Internet. Towards this
end, it provides a whole range of services under B2B, B2C, mobile banking,
etc. Most transactions have been increasingly web-enabled to offer
customers location-independent and time-independent services.
Network expansion
During the quarter, the Bank crossed two milestones by opening more than
100 offices and installing more than 200 Automated Teller Machines (ATMs).
During the first quarter, the Bank expanded its distribution network by
opening 4 branches and installing 33 additional work-site and off-site
ATMs. As at June 30, 2000, the Bank's physical network consisted of 85
branches and 16 extension counters. The Bank had 208 ATMs - the largest
network of ATMs in the country - spread across 49 centres in 17 States and
Union Territories. This physical distribution network is complemented by
other technology driven delivery channels such as web-enabled kiosks, call
centres, mobile phones and the Internet.
The summary of the accounts as at June 30, 2000 under both the accounting
standards followed in India (audited) and US GAAP (unaudited) is enclosed.
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)crore = 10 million (c) B2B - Business to
Business (d) B2C - Business to consumer
--------------------------------------------------------------------------------
Except for the historical information contained herein, statements in this
Release which contain words or phrases such as 'will', 'would', 'aim',
'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 hereof.
July 20, 2000
<PAGE>
