United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of May 2002
ICICI Bank Limited
(Translation of registrant's name into English)
4th floor, South Tower
ICICI Towers,
Bandra-Kurla Complex
Mumbai, India 400 051
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g 3-2(b) under the Securities Exchange
Act of 1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g 3-2(b).
Not applicable.
INDEX TO EXHIBITS
Item
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1. Summarised audited financial results for the year ended March 31, 2002.
2. Press announcement by ICICI Bank Limited.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: May 3, 2002
ICICI Bank Limited
By: /s/ Nilesh Trivedi
--------------------------
Name: Nilesh Trivedi
Title: Assistant Company Secretary
Item 1
[GRAPHIC] ICICI Bank
AUDITED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2002
(Rupees in crores)
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Year ended Three months ended
Sr. Particulars under Indian GAAP --------------------------------------------------------
No. March 31, March 31, March 31, March 31,
2002 2001 2002 2001
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1. Interest earned (a)+(b)+(c)+(d) 2151.93 1,242.13 677.34 369.13
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a) Interest/discount on advances/bills 771.67 570.91 191.48 166.41
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b) Income on investments 1233.80 555.73 437.51 176.15
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c) Interest on balances with Reserve Bank of India and other
interbank funds 122.62 108.67 40.92 22.36
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d) Others 23.84 6.82 7.43 4.21
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2. Other Income 574.66 220.34 174.82 99.83
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A) TOTAL INCOME (1) + (2) 2726.59 1,462.47 852.16 468.96
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3. Interest expended 1558.92 837.67 533.18 243.55
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4. Operating expenses (e) + (f) 622.58 334.63 181.91 121.91
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e) Payments to and provisions for employees 147.18 51.71 36.22 17.67
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f) Other operating expenses 475.40 282.92 145.69 104.24
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B) TOTAL EXPENDITURE (3) + (4) (excluding provisions and contingencies) 2181.50 1,172.30 715.09 365.46
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5. OPERATING PROFIT (A-B) (Profit before provisions and contingencies) 545.09 290.17 137.07 103.50
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6. Other provision and contingencies 255.29 63.65 138.14 23.49
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7. Provision for taxes
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a) Current period tax 121.83 65.42 37.09 29.61
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b) Deferred tax adjustment (90.33) (95.04)
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8. Net profit (5-6-7) 258.30 161.10 56.88 50.40
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9. Paid-up equity share capital 613.03 220.36 613.03 220.36
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10. Reserves excluding revaluation reserves 5635.54 1,092.26 5635.54 1,092.26
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11. Analytical ratios
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(i) Percentage of shares held by Government of India .. .. .. ..
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(ii) Capital adequacy ratio 11.44% 11.57% 11.44% 11.57%
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(iii) Earnings per share for the relevant period (in Rs.)
(basic and diluted) 11.61 8.13 2.56 2.54
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12. Aggregate of non-promoter shareholding
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o No. of shares 61,30,30,904 11,68,16,231 61,30,30,904 11,68,16,231
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o Percentage of shareholding 100.00 53.01 100.00 53.01
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(Rupees in crores)
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Year ended (audited) Three months ended
Particulars under US GAAP --------------------------------------------------------
March 31, March 31, March 31, March 31,
2002 2001 2002 2001
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Net Profit under Indian GAAP 258.30 161.10 56.88 50.40
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Reconciliation items
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Profit of ICICI Ltd., ICICI-PFS and I-Caps accounted for
under Indian GAAP for 2 days (7.89) .. (7.89) ..
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Deferred taxation 21.44 44.21 10.44 24.46
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Loan impairment 9.40 (39.53) 14.18 (28.96)
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Mark to market impact on investments (5.95) (40.59) (1.73) (14.31)
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ADR issue expenditure charged to P & L A/c 10.19 10.47 2.29 2.54
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Premium amortisation on investments (34.25) (9.28) (17.50) (3.24)
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Amortisation of fair valuation (16.76) .. (7.61) ..
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Depreciation on fixed assets (7.63) (5.68) (6.73) (0.58)
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Amortisation of expenses (8.78) 15.18 (0.08) 3.48
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Others (14.35) (5.04) (13.55) (1.95)
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Profit under US GAAP 203.72 130.84 28.70 31.84
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The above financial results have been taken on record by the Board of Directors of the Bank at its meeting held on May 3, 2002.
Place: Mumbai Kalpana Morparia
Date: May 3, 2002 Executive Director
Segment information in accordance with the Accounting Standard on
Segment Reporting (AS17) of ICICI Bank Limited and its Subsidiaries
(Rupees in crores)
--------------------------------------------------------------------------------
Year ended
Particulars March 31, 2002
--------------------------------------------------------------------------------
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1. Segmental revenue
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a. Retail 1484.99
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b. Corporate 1382.59
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c. Treasury and Corporate Office 755.09
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d. Others 53.43
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TOTAL 3676.10
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Less: Inter segment revenue 943.20
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Income from operations 2732.90
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2. Segment results
(Profit before tax)
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a. Retail 75.97
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b. Corporate 76.04
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c. Treasury and Corporate Office 127.90
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d. Others 9.59
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TOTAL PROFIT BEFORE TAX 289.50
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3. Capital employed (i.e. Segment
Assets - Segment Liabilities)
(excluding inter-segmental funds
lent and borrowed)
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a. Retail (11035.28)
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b. Corporate (826.81)
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c. Treasury and Corporate Office 13173.88
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d. Others 4184.95
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TOTAL 5496.74
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Notes
1. ICICI Limited with its subsidiaries, ICICI-PFS Limited and ICICI Capital
Services Limited was amalgamated with the Bank w.e.f. March 30, 2002 in
terms of the Scheme of Amalgamation sanctioned by the Reserve Bank of
India vide their letter dated April 26, 2002 and the above results include
the results of the merged entity from that date.
2. Provision for taxes has been arrived as per Accounting Standard-22.
3. In addition to AS-22, the Bank adopted accounting standards on segment
reporting, related party disclosures, income taxes and earning per share
which became mandatory for accounting periods commencing on or after April
1, 2001.
4. Net non-performing assets to customer assets is 4.7% (Previous year 1.4%)
including non-performing assets of ICICI Limited at fair value.
5. The Scheme of Amalgamation provides for transfer of shares held by ICICI
Limited in the Bank amounting to 16.54% of the paid-up equity share
capital to a Trust prior to their disposal. This is not treated as
promoter holding for disclosure in item 12.
6. Previous period figures have been regrouped/reclassified where necessary
to conform to current period classification.
ICICI BANK LIMITED
Registered Office: Landmark, Race Course Circle, Alkapuri, Vadodara - 390 007
Corporate Office: ICICI Towers, 4th Floor, South Tower, Bandra-Kurla Complex,
Bandra (East), Mumbai 400 051.
Web site: http://www.icicibank.com
Electronic mail: info@icicibank.com
Item 2
[GRAPHIC OMITTED] ICICI Bank Limited
ICICI Bank Towers
Bandra Kurla Complex
Mumbai 400 051
News Release May 3, 2002
Performance Review - Year ended March 31, 2002
With the completion of all requirements for the merger of ICICI Limited
(NYSE: IC) and two of its wholly-owned subsidiaries with ICICI Bank
Limited (NYSE: IBN), the combined entity came into existence with effect
from May 3, 2002. The Appointed Date for the merger however continues to
remain March 30, 2002 as provided for in the Scheme of Amalgamation.
The reconstituted Board of Directors of ICICI Bank at its meeting held at
Mumbai today approved the audited accounts of the merged entity for the
year ended March 31, 2002 (FY2002). The Board also approved the audited
consolidated accounts under Indian GAAP and the audited US GAAP financial
statements for FY2002.
The combined entity has emerged as the largest private sector bank in the
country marking a new era in Indian banking, adding considerable strength
to the Indian financial system. The significant features of the combined
entity are:
o A highly diversified asset base - With a balance sheet size of over Rs.
104,000 crore, it has 34% in cash and Government of India securities,
short-term corporate finance loans of 23%, retail loans of 8% (including
operations of ICICI Home Finance Company Limited) and long-term project
finance loans of 23%. The balance assets consist of investments of 5% and
other miscellaneous assets.
o By adopting the purchase method of accounting, based on the fair valuation
of the loan portfolio by Deloitte Haskins & Sells and marking-to-market of
the equity and related investment portfolio, ICICI Bank has written down
assets of ICICI to the extent of Rs. 3,780 crore. This amount has been
utilised as follows:
o Marking-to-market ICICI's equity and related investments by Rs. 925 crore;
o Creating additional provisions in respect of ICICI's non-performing
loans to the extent of Rs. 902 crore, increasing the coverage
(provisions and write-offs against NPLs as a percentage of gross
NPLs) to 63% on ICICI's NPLs, and reducing the NPL ratio to below
5.0%, at 4.7% for the merged entity; and
o Creating additional provisions to the extent of Rs. 1,953 crore to
provide for any future impairment of ICICI's legacy assets. As a
result of this additional cushioning, the general provision against
ICICI's performing
1
loans stands increased to 4.5% against the regulatory requirement of
0.25%.
2
o The Bank has a network of over 400 branches and the largest connected
ATM network of over 1,000 ATMs in the country offering anytime,
anywhere banking. In addition, it has over 120 retail centers across
more than 75 geographic locations.
o The Bank has deposit customer accounts of 5.0 million, in addition to
5.0 million bondholder accounts.
o The Bank continues to enjoy a capital adequacy ratio of 11.44%
(Tier-1 of 7.47%) as against the regulatory requirement of 9%.
Since October 2001, when the merger decision was taken, the Bank has added
about Rs. 15,000 crore of deposits, which accounts for a market share of
20% in incremental deposits in the banking system, creating a sound base
for the future growth of the Bank. As a part of the merger exercise, ICICI
Bank initiated the process of selling down its assets, which created a new
market for securitised paper in the country.
Earnings
ICICI Bank's profit after tax as per the audited unconsolidated Indian
GAAP increased by 60.2% to Rs. 258 crore in FY2002 from Rs. 161 crore in
the previous year. As the merger has come into effect only on March 30,
2002, ICICI Bank's profit of Rs. 258 crore for FY2002 includes only two
days profit of ICICI and its merging subsidiaries, amounting to about Rs.
8 crore. The profit of FY2002 for the Bank is therefore largely comparable
to FY2001. Net interest income increased 46.7% to Rs. 593 crore from Rs.
404 crore, and core fee income increased 65.5% to Rs. 283 crore from Rs.
171 crore. The average cost of deposits declined to 7.3% in FY2002 from
7.8% in FY 2001.
The profit for the quarter ended March 31, 2002 (Q4-FY2002) was Rs. 57
crore compared to Rs. 50 crore in the corresponding quarter last year. The
profit for Q4-FY2002 has been affected due to higher deposit mobilisation
and substantial addition to the SLR portfolio to meet the reserve
requirements of the merged entity. However, the core fee income for
Q4-FY2002 increased by 62.3% as compared to the corresponding quarter in
the previous year.
3
Dividend
In view of the substantial interim dividend of Rs. 2.00 per share declared
in January 2002, the Board of ICICI Bank while approving the audited
accounts decided not to recommend any further dividend for the year.
US GAAP Accounts
Under US GAAP, business combinations must be accounted for in the
accounting period in which they are consummated and not in a previous
accounting period, other than in exceptional circumstances. The date of
merger for accounting purposes under US GAAP would therefore be April 1,
2002 and not March 30, 2002, as sanction of the High Court of Bombay and
approval of RBI were received in April 2002. Accordingly, ICICI Bank's US
GAAP accounts for FY2002 do not reflect the results of operations, assets
and liabilities of ICICI, ICICI PFS and ICICI Capital, or of subsidiaries
of ICICI that have now become subsidiaries of ICICI Bank.
ICICI Bank's net income increased 55.7% to Rs. 204 crore in FY2002 from
Rs. 131 crore in FY2001. Net interest income increased 43.0% to Rs. 572
crore in FY2002 from Rs. 400 crore in FY2001.
Record Date
The Board of Directors has fixed June 7, 2002 as the Record Date for the
purpose of issue of equity shares to the equity shareholders of ICICI.
ICICI Bank will issue ICICI Bank equity shares and ADRs respectively to
equity shareholders and ADR holders of ICICI after the Record Date.
Trading in equity shares of ICICI on the Indian stock exchanges will cease
from a date prior to the Record Date, to be notified by the Stock
Exchanges. Trading in ICICI's American Depository Receipts (ADRs) on the
New York Stock Exchange (NYSE) has ceased from May 3, 2002, the Effective
Date of the merger, and ICICI Bank ADRs to be issued in exchange for ICICI
ADRs are trading on "when issued" basis. The term "when issued" indicates
that the ADRs have been authorised for issuance but not actually issued.
All transactions on "when issued" basis are settled only when the
securities are issued.
4
ICICI Limited - Results for FY2002
Proforma Unconsolidated Indian GAAP Accounts
While ICICI's results for FY2002 on a standalone basis are not required to
be disclosed consequent to completion of its merger with ICICI Bank with
March 30, 2002 as the Appointed Date, proforma unconsolidated results
under Indian GAAP are being presented in accordance with best practices in
disclosure and to facilitate analysis by our stakeholders. The profit
before additional provisions and tax was Rs. 1,332 crore for FY2002 as
compared to Rs. 1,390 crore for FY2001. The decline in profit before
additional provisions and tax in FY2002 was essentially as a result of the
change in business plan arising out of the merger. Additional provisions
and other charges of Rs. 557 crore against loans and investments were
recorded in ICICI's profit and loss account in FY2002. In FY2001, ICICI
had made accelerated provisions of Rs. 813 crore over and above the
provisions required by RBI guidelines. The profit after additional
provisions and tax increased by 25% to Rs. 670 crore in FY2002 from Rs.
537 crore in FY2001.
US GAAP Accounts
As mentioned above, the date of merger for accounting purposes under US
GAAP would be April 1, 2002. Further, under US GAAP, while ICICI Bank is
the legal acquirer, ICICI would be the accounting acquirer as required by
FAS-142.
ICICI's net income for FY2002 was Rs. 136 crore (US$27.8 million)
including Rs. 126 crore (US$ 25.8 million) on account of cumulative effect
of change in accounting principle. Provisions for credit losses were Rs.
974 crore (US$ 199.4 million) reflecting charge-offs on impaired loans.
Forward-Looking Statements
Except for the historical information contained herein, statements in this
release which contain words or phrases such as 'will', 'would', etc., 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 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
5
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.
For press queries please call Madhvendra Das at 91-22-653 6124 or email at
madhvendra.das@icicibank.com
For investor queries please call Rakesh Jha at 91-22-653 8902 or Anindya
Banerjee at 91-22-653 7131 or email at ir@icicibank.com
6