New Delhi, March 26 Financial power house ICICI is likely to reduce its non-performing assets (NPA) ratio to 5-6 per cent this fiscal as against 7.6 per cent last year, despite a slowdown in some industrial sectors, a top official has said."The net NPA ratio is expected to come down to 5-6 per cent this fiscal," ICICI chief executive officer CEO, KV Kamath, said.
ICICI's NPA had come down from 8.1 per cent in 1998-99 to 7.6 per cent last year on account of the greater emphasis placed on the recovery and settlement of bad assets and a proactive approach towards 'cases under stress' adopted by the company's Special Asset Management Group.
Mr Kamath, however, refused to give details about the company's net profit, which grew by 21 per cent to Rs 1,206 crore last fiscal even after providing for Rs 690 crore. The company, listed in New York Stock Exchange (NYSE), had posted a healthy business growth with disbursals rising by 34 per cent to Rs 25,836 crore last fiscal, on account of the continued focus on infrastructure and oil and gas sectors.
The FI had also taken up exposure in the leisure industry, including a golf resorts promoted by Jaiprakash Industries. Asked whether ICICI would invest more in such non-core sectors, Mr Kamath said, "If a project is viable, we will invest in it."
The CEO indicated that the company would continue its initiatives in the new economy despite the tumbling of the IT stocks and the dot com bubble burst. "We will invest in call centres, B2B and B2C portals (in the near future)," he said.
ICICI is in the process of creating a dedicated in-house e-commerce group to exploit opportunities thrown up by the new economy. About ICICI Bank's merger with the Bank of Madura, Mr Kamath earlier said that the integration of the two banks' technology and manpower base would be completed in about six months' time. "There will be no cut in work-force in the merged entity," he said.
Asked about the FI's general insurance venture, the CEO said that the ICICI-Lombard application is currently being processed by the Reserve bank of India.
The 74:26 venture between ICICI and Lombard Insurance had already filed an application with the Insurance Regulatory and Development Authority for a general insurance license.
ICICI and UK-based Prudential has obtained a life insurance license and started operations in the country.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
