The board of directors of the new generation private sector bank, which met on July 23 in Mumbai, adopted the `audited' results for the first quarter ended June 30, 1999.

"ICICI Bank's total expenditure more than doubled to Rs 181.9 crore for the April-June 1999-2000 quarter against an expenditure of Rs 88.4 crore for the first quarter of last fiscal. However, the total income almost kept pace as it moved up to Rs 222.2 crore against Rs 121.1 crore, up 83.4 per cent for the period under review," an ICICI Bank release said, adding that the bank's other income surged by 24 per cent to Rs 23.2 crore for the quarter ended June 30, 1999 againstRs 18.7 crore for the corresponding quarter last year.

ICICI Bank said that during the first quarter of the current fiscal, the bank opened five branches and has also initiated appropriate risk-mitigation measures (including a business continuity plan) to deal with the Y2K problem. "The expenditure on addressing the remaining issues of the Y2K project is estimated at Rs 50 lakhs," the bank release said.

The ICICI Bank scrip, which opened at 36.70, closed lower at Rs 36.50 after touching an intra-day high of Rs 36.95 on the Bombay Stock Exchange.

INSIGHT

The scorching pace of growth shown by leading new generation banks like ICICI Bank last year is continuing very comfortably. On top of 100 per cent growth last year, Q1 growth over the corresponding period last year is by another 100 per cent. The faster ICICI Bank grows the closer it moves towards an equity dilution, as its capital adequacy comes under pressure. The uncertainty over equity dilution will keep pressure on the stock.

--AaronChaze