Mumbai, Oct 22: ICICI Ltd, one of the country's largest financial firms, expects its non-performing assets ratio to decline this year, the company's managing director and CEO, KV Kamath, said on Thursday."We have cleaned up the past by providing for or aggressively settling with clients...the results have been satisfying," Kamath told Reuters in an interview.
As a percentage of assets, ICICI's net NPA stood at 7.8 per cent on March 31 this year, up from 7.6 per cent a year before.
Kamath said the adoption by the company of US GAAP accounting rules would give a clearer picture to investors.
"The clean up process has improved, a much higher level hasbeen provided," he said.
Besides the Indian reporting, ICICI will now also report its financial performance by US rules because the company last month listed its ADR on the New York Stock Exchange.
"On a macro-economic level, the systemic risk of NPAs in India is much lower than in the Far East," Kamath said.
Outstanding loans to the private sector in India was at 20 per cent of gross domestic product compared to some South East Asian countries where it was 150 percent," the managing director said.
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