ICICI Bank net up 60% at Rs 258cr

The new-look ICICI Bank, which came into existence on May 3, announced its annual results for the year 2001-02, following its mega merger wi...

The new-look ICICI Bank, which came into existence on May 3, announced its annual results for the year 2001-02, following its mega merger with parent ICICI Ltd.

The bank has reported a 60.2 per cent rise in its net profit, to Rs 258 crore, against Rs 161 crore in the previous fiscal. The results include two days’ profits of ICICI, since the merger was effective only on March 30, 2002. The profit of the bank is therefore largely comparable with its previous year’s figures.

A crucial factor relating to this year’s accounts of ICICI Bank

is the writing down of assets of ICICI, which was fair valued for the purpose of the merger, based on the report of Deloitte Haskins & Sells. The writing down was to the extent of a whopping Rs 3,780 crore.

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This amount has been utilised as follows: marking to market ICICI’s equity and related investments by Rs 925 crore; creating additional provisions in respect of its NPLs to the extent of Rs 902 crore; increasing the coverage—provisions and write-offs against NPLs as a percentage of gross NPLs — to 63 per cent and reducing the NPL ratio to below five per cent (it is 4.7 per cent for the merged entity); creating additional provisions to the extent of Rs 1953 crore for future impairment of ICICI’s legacy assets.

The board has fixed June 7, 2002, as the record date for the purpose of issue of equity shares to the equity shareholders of ICICI.