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Our Bureau

Mumbai , March 19

ICICI Bank's home loan portfolio has grown by 57 per cent over the nine-month period ended December 31, 2003 to Rs 14,345 crore.

The retail portfolio of the ICICI Bank as on December 2003 stood at Rs 28,265 crore, retail as a per cent to total exposure constituted 28.2 per cent.

Other major constituents of retail include automobile loans, which grew by 30 per cent to Rs 5,785 crore and commercial business (this includes commercial vehicle, construction equipment and farm equipment loans), which registered a growth of 34 per cent to Rs 3,304 crore.

While the retail business has grown almost fourfold as compared to March 2002, ICICI Bank's lending to most corporate sector segments has declined coinciding with the economic slowdown in the country.

According to the draft prospectus filed with SEBI for the Rs 3,500-crore public issue of ICICI Bank, the few areas where exposure of the bank has increased marginally include telecom, where exposure as a per cent of total exposure increased to 6.0 per cent as on December 2003 up from 5.1 per cent as on March 2002.

Exposure to engineering has increased to 4.5 per cent (3.5 per cent), petrochemicals to 2.5 per cent (2.1 per cent), plastics 1.1 per cent (1.0 per cent), other industries 8.1 per cent (4.6 per cent) and infrastructure 2.3 per cent (1.6 per cent).

The gross NPAs (net of write offs) of the bank was on the increase during the nine-month period ended December 2003 touching Rs 6,006 crore, up from Rs 5,839 crore in March 2003. Sectorwise analysis of gross NPAs shows that the increases have been mostly on account of power, engineering, electronics, non-banking finance companies and other industries.

The gross NPAs in power increased to Rs 556 crore as on December 2003, up from Rs 62 crore in March 2003.

Bad loans in engineering increased to Rs 441 crore (Rs 411 crore), in cements to Rs 181 crore (Rs 162 crore) in paper and paper products to Rs 180 crore (Rs 173 crore) in electronics to Rs 134 crore (Rs 105 crore), in non-banking finance companies to Rs 73 crore (Rs 64 crore), in rubber and rubber products to Rs 48 crore (Rs 41 crore), in other industries to Rs 1,328 crore (Rs 935 crore). Other major contributors to the bank's NPAs include chemicals at Rs 1,186 crore, textiles at Rs 945 crore and iron and steel at Rs 406 crore.

The bank has adopted an accelerated provisioning policy whereby provisions aggregating 50 per cent of the secured portion of corporate non-performing assets are made over a three-year period instead of a five-and-a-half year period prescribed by RBI.

Loss assets and the unsecured portion of doubtful assets are fully provided for or written off. Additional provisions are made against specific NPAs if considered necessary by the management,' said the prospectus.

More Stories on : Private Banks | Housing Finance

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