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   Non-TechICICI Ltd - (Nyse: IC)

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To: Labrador who wrote (486)5/6/2000 11:07:00 AM
From: Labrador
   of 494
Here's a great write-up of ICICI, and its potential is obvious.
The Economic Times

ICICIs ability to capitalise on its early-mover advantage, improving asset profile and improving economic prospects have been driving the stock lately. Besides, its listing on the NYSE has also helped this FI move away from its traditional association with the commodity cycle. ICICIs web-trading product is the most recent in several e-commerce products it launched through its banking arm, ICICI Bank. Beginning with more traditional services such as payment of telephone bills, account balance queries and opening a bank account, ICICI went on to provide a platform to customers for facilitate trade and payment over the internet using ICICI Banks banking products. It has clearly taken the lead and is capitalising on its first-mover advantage by introducing new products. ICICI is expected to launch a few more e-commerce related products, particularly in the area of B2B and possibly B2C.

THE new web-trading product is being launched through a new subsidiary ICICI Web Trade, marking its foray into e-broking. This is the first integrated product that enables an ICICI Bank customer to buy shares on both cash and margin basis and have it deposited in the persons current account. This is likely to provide a fair amount of free float to ICICI . This will help ICICI reduce its funding costs apart from providing additional fee income. The proposed new product underlines the benefits of an integrated universal bank structure with ICICI Bank, ICICI Securities and ICICI Ltd, all playing a central role along with ICICI Web Trade.

This product together with the payment gateway will enable the bank to take ob about one lakh online customers over the next 7 to 8 months, from the current level of 14,000. This will accelerate the process of ICICI achieving the critical mass. It will simultaneously provide ICICI with enhanced cross selling opportunities.

The launch of its credit card expected by February 2000 should further close the existing gaps in the product line and provide an even greater thrust to ICICI groups cross selling efforts.

Although e-commerce business volumes in India are currently small, one player, proactive in the field of e-commerce, is likely to grab a larger share of that business with a resulting material impact. E-commerce is a medium that ICICI can exploit to enhance its payment franchise. Compared with traditional banks that earn a substantial proportion of their fees by way of LCs and remittances, ICICIs fee income is largely dependent upon guarantees and fees. This was an area where ICICI was lagging behindbecause of regulatory constraints on FIs. The internet does provide ICICI with the opportunity to take this advantage away from traditional banks that still rely on the brick and mortar branch network.

ICICI Infotech, a fully-owned subsidiary of ICICI , began as a registrar and transfer agency. Now a transaction processing company, it serves as ICICIs investor servicing company. It has set up an integrated document imaging and management system to handle investor correspondence. It handles all processing requirements of ICICIs retail business and implements SAP and millennium projects for the parent.

With the company beginning to cater to third party assignments, ICICI is expected to develop it into a regular technology company to enable it to achieve a prominent position. ICICI has also stated that over the long term, it plans to take the company public as employees of this company have been offered stock options. There is a strong likelihood that ICICI may acquire an existing software content provider and merge it with ICICI Infotech to develop it into a regular software company. Any acquisition in this direction is likely to result in ICICI getting higher valuations.

AN important facet of ICICIs strategy is its diversification into retail banking. This results in diversity of fund-base, lower cost of funding and a strategic opportunity. ICICI is a large borrower in the wholesale market, but a retail funding franchise is crucial to sustain competitiveness in short term lending - its new focus. ICICI has also recognised that it needs to access the domestic savings pool directly, which is the key to lower costs.

Retail banking is still in its early days and ICICI believes it can provide a better value proposition to customers than several of its peers. Technology has cut costs and regulatory barriers and ICICI can now offer a wide range of products through an array of channels. Among key elements of ICICIs retail strategy is a multi-channel distribution network centred around 300-odd low-cost automated centres in top 150 to 200 cities and 100-odd branches of ICICI Bank. Another is a branding strategy backed by adequate ad spending and a wide product range to maximise the share.

The retail distribution is gaining critical mass. ICICI is fast developing retail loan products and has launched mortgage loans. It plans to nationally launch consumer durables products.

ICICI is the first institution that has put in place a compatible IT architecture and common IT strategy across group companies. When regulations permit, the operations of individual entities could smoothly integrate. Even now, there would be no loss on the cross-selling opportunity or servicing ability owing to the capability of IT systems.
NPAs are believed to have peaked during last fiscal. ICICI will be able to manage asset quality problems, going forward, due to better prospects of economic recovery and rising commodity prices, loan profile changing in favour of better quality loans and increased focus on NPL management and recoveries. Post FY 97, as part of its long-term strategy, ICICI has focussed on infrastructure and shorter term working capital loans. Incremental disbursements to manufacturing projects were cut. Proportion of manufacturing loans has fallen from 73 per cent in FY 97 to below 50 per cent in FY 99. Infrastructure and working capital loans form 51 per cent of total loans in FY 99.
HISTORICALLY, for ICICI , a low provision cover has been a cause for concern. However, in FY 99, ICICI restated its accounts under US GAAP according to which the management has substantially raised provision coverage to 49 per cent. This is comparable with the coverage for domestic banks. ICICI has recognised its investment losses under US GAAP and written off Rs 600 crore from its books. This is quite positive, and was a persistent concern under the Indian GAAP.

IMPROVEMENTS in the outlook of commodity prices and the domestic economy have helped in better valuations for the scrip. Higher disclosures through adoption of US GAAP has resulted in a more transparent balance sheet. The potential of ICICIs e-commerce foray and its emerging retail franchise is expected to provide an upside to the valuations. A good medium term buy in our perspective.

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To: Mohan Marette who started this subject9/16/2000 8:10:20 PM
From: Labrador
   of 494
Anybody home? And now touched under $12.

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To: Mohan Marette who started this subject8/8/2001 4:18:07 PM
From: Labrador
   of 494
Performance Review - First Quarter Ended June 30, 2001: 21% Increase in Profit to Equity Holders
MUMBAI, India, Jul 27, 2001 (BUSINESS WIRE) -- The Board of Directors of ICICI at its meeting held in Mumbai today, approved the audited accounts of ICICI (NYSE: IC chart, msgs) for the first quarter ended June 30, 2001 (Q1-2002). The Board also approved the unaudited consolidated accounts under Indian GAAP and considered the unaudited consolidated US GAAP financial statements of ICICI for Q1-2002. In order to facilitate comparison with earlier years, the key highlights of the unconsolidated accounts of ICICI under Indian GAAP are given below.

Results - Indian GAAP

Profit to equity holders (profit after tax less preference dividend payout) increased 21% to Rs. 326 crore in Q1-2002 from Rs. 269 crore in the quarter ended June 30, 2000 (Q1-2001). The profit after tax increased to Rs. 326 crore in Q1-2002 from Rs. 287 crore in Q1-2001.

Business Operations

The period under review was marked by generally lower credit off-take by corporates, and limited project finance opportunities in the absence of new projects. However, ICICI continued to maintain its growth by leveraging its strong corporate relationships and customised financial solutions. ICICI's disbursals increased 6% to Rs. 8,741 crore in Q1-2002 from Rs. 8,240 crore in Q1-2001. Total assets were Rs. 74,751 crore at June 30, 2001, an increase of 14% compared to June 30, 2000. ICICI's client-centric business model has been strengthened by the formation of dedicated relationship groups as part of the recent re-organisation of the wholesale banking business. The newly-created Government & Institutions Group (GIG) has made significant progress in establishing relationships with public sector undertakings, urban local bodies and other government institutions which offer wide-ranging business opportunities. GIG accounted for 13% of ICICI's disbursals for the quarter.

ICICI continues to diversify and de-risk its portfolio by focussing on highly rated clients and structured finance. Disbursals to "A-" and higher rated clients accounted for 92% of ICICI's total disbursals during the quarter.

ICICI's business volumes in retail finance continued to increase, and the ICICI Group today offers automobile finance loans in 72 cities, home loans in 61 cities, consumer durable loans in 26 cities and dealer funding in 29 cities. ICICI is today the largest financier for several leading automobile brands and a key housing finance provider. The ICICI Group's retail finance disbursals increased to Rs. 1,139 crore in Q1-2002 from Rs. 571 crore in Q1-2001. Retail finance disbursals accounted for 13% of total disbursals in Q1-2002 as compared to 7% in Q1-2001.

ICICI continued to unlock value out of its technology-related investments. During Q1-2002, ICICI divested 7.8% in the ICICI Eco-Net Fund in favour of Compaq Corporation for a consideration of US$ 4 million, recording capital gains of Rs. 11 crore.

Despite the high volatility in the equity markets and declining stock indices, ICICI's secondary market equity trading operations resulted in a net gain of Rs. 4 crore. This was achieved through active management of the portfolio and the use of equity derivatives. During the quarter, secondary market equity trading exposure ranged between Rs. 20 crore and Rs. 76 crore. ICICI also outperformed the market indices in its trading operations in government securities.

Asset Quality

ICICI's net NPA ratio was 5.1% at June 30, 2001 and net NPAs outstanding were Rs. 3,007 crore. ICICI has been able to restrict the level of NPAs due to its focussed efforts for recovery from existing NPA cases and increased monitoring of stress cases. The Special Asset Management Group (SAMG) continues to drive ICICI's efforts towards recovery and asset resolution. ICICI has made provisions against NPAs as per the accelerated provisioning policy adopted from FY2001, which achieves a provision cover of 50% against the secured portion of NPAs in three years as against five-and-a-half years mandated by the Reserve Bank of India.

Rapid liberalisation and globalisation has changed the operating environment for Indian companies and necessitated restructuring of operations and credit facilities of some intrinsically viable companies. ICICI has focused on proactive restructuring of such viable companies to maximise their economic value, with appropriate contractual mechanisms to mitigate credit risk and safeguard lenders' interests. The RBI has issued guidelines which provide a strong impetus to proactive and meaningful restructuring. During Q1-2002, ICICI restructured assets aggregating Rs. 1,439 crore and made provisions/ write-offs of Rs. 32 crore against these restructured assets.

Capital Adequacy

ICICI's capital adequacy at June 30, 2001 was 15.1% including Tier-1 capital adequacy of 9.6% and Tier-2 capital adequacy of 5.5% (including revaluation reserve as per the RBI guidelines).

Unaudited Consolidated Accounts under Indian GAAP

Profit after tax increased by 25% to Rs. 371 crore in Q1-2002 from Rs. 297 crore in Q1-2001.

Unaudited Consolidated Accounts under US GAAP

Income before tax and cumulative effect of change in accounting principles increased 21% to Rs. 334 crore (US$ 71 million) in Q1-2002 from Rs. 275 crore (US$ 58 million) in Q1-2001. Net income before cumulative effect of change in accounting principles increased 9% to Rs. 251 crore (US$ 53 million) in Q1-2002 from Rs. 231 crore (US$ 49 million) in Q1-2001. However, adding back the cumulative effect of change in accounting principle amounting to Rs. 126 crore, net income for Q1-2002 is Rs. 377 crore (US$ 80 million).

The balance sheet does not include the deferred tax asset arising out of 'other than temporary' diminution on investments charged to the income statement in prior years. Inclusion of such asset could have a positive impact of upto Rs. 96 crore on stockholders' equity at March 31, 2001. However, the exact amount will be ascertained on evaluation of likely realization of the deferred tax asset by the management. This change will be incorporated in the Form 20-F, as a correction to the financial statements for financial year 2001, to be filed with the Securities Exchange Commission.

Summary Profit and Loss Statement
(Indian GAAP)

Rs. crore

Q1-2001 Q1-2002 Growth % FY 2001

Fund based
income 2,001 2,207 10.3% 8,211
Less : Interest
and other charges 1,626 1,836 13.0% 6,912
Net fund based income 375 371 (1.1%) 1,299
Add : Fees and
commissions 98 166 68.8% 522
Net income from
operations 473 537 13.5% 1,821
Less : Operating
expenses 83 78 (6.9%) 337
Profit from operations 390 459 17.8% 1,484
Less : Provisions
and write-offs for
loans & debentures 115 109 (4.4%) 608
Profit before income
from investments and
other income 275 350 27.1% 876
Add : Dividend income 51 45 (12.2%) 108
Add : Gross Capital Gains 6 43 -- 489
Less : Write-down
of investments 27 56 -- 145
Net capital gains (21) (13) -- 344
Add : Other income 8 4 (51.9%) 62
Profit before
accelerated provisions
& tax 313 386 23.0% 1,390
Profit before tax 313 386 23.0% 577
Less : Provision for tax 26 60 130.8% 40
Profit after tax 287 326 13.3% 537
Preference dividend 18 - - 18
Profit to equityholders 269 326 20.7% 519

Summary Balance Sheet (Indian GAAP)
Rs. crore

Jun 30, Jun 30, Mar 31,
2000 2001 Growth % 2001

Net loans and
debentures 50,501 57,196 13.3% 56,002
Other Investments 3,371 4,461 32.4% 4,404
Current assets 7,123 7,005 (1.6%) 7,583
Leased assets 3,581 3,954 10.4% 4069
Other fixed assets 904 1,804 99.5% 1,042
Miscellaneous expenditure 350 331 (5.5%) 314
Total assets 65,830 74,751 13.6% 73,414
Shareholders' equity
and reserves 8,303 9,018 8.6% 7,973
Of which : Equity capital 784 785 0.1% 785
Preference capital 359 350 (2.4%) 350
Borrowings 52,087 60,084 15.4% 59,835
Current liabilities 5,081 5,299 4.3% 5,256
Total liabilities 65,830 74,751 13.6% 73,414

Note :

1. Shareholders' equity and reserves includes revaluation reserve of
Rs. 720 crore.

2. Provision for taxation for Q1-2002 includes deferred tax provision
as per the accounting standard. However, no deferred tax liability
relating to earlier years has been created. If such liability was
created, the reserves would have been lower by Rs. 339 crore.

Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" 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 successfully implement our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by ICICI Limited with the Securities and Exchange Commission of the United States. ICICI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

ICICI Limited
(For press queries)
Madhvendra Das, 91-22-653 6124
email at
(For investor queries)
Rakesh Jha, 91-22-653 8902
Sandeep Guhagarkar, 91-22-653 6157
email at

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To: Labrador who wrote (489)8/9/2001 10:19:26 AM
From: Labrador
   of 494
By the way, the last quarterly results were 0.34 U.S. per NYSE ADR.

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To: Labrador who wrote (490)8/14/2001 10:57:55 PM
From: Imran
   of 494
why is the stock so down? i bought earlier at 16, then saw it go up to the peak and down to 11, where i sold out.....

what are the prospects? earnings are still good..........


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To: Imran who wrote (491)8/15/2001 8:30:33 AM
From: Labrador
   of 494
It is so difficult to get good U.S. based accounting information on this company. I think that most people don't even bother with IC any more.

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To: Labrador who wrote (492)8/15/2001 5:45:21 PM
From: Imran
   of 494
i guess so.......accounting in US GAAP seems to not be a priority..........but, do u think the fundamentals are there? steady divs and the indian govt will never let it go down....


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From: stevenmdart11/24/2009 6:54:33 AM
   of 494
Acquisitions and the Pharma industry

The Pharmaceutical industry has always been ruled by a selected number of ‘kings’, but now things are changing. New entrants are severely shaking their R & D models. Survival strategy - Instead of competing with them in research & development, the top 20 pharmaceutical companies are outsourcing the legwork to the new-borns. Not only to save around $7.5 billion annually (pharmaceutical industry) on an average, but also to save on the opportunity cost of generics replicating their formulas and selling products at huge discounts.

CytoDyn (CYDY) incorporated in 2003, has also come to the table with a revolutionary breakthrough: Cytolin. They claim it to be the only solution for HIV/AIDS (immune system therapy); and to prove it, studies of the drug will be designed and conducted by Massachusetts General Hospital. Past results of drug test on ten HIV infected subjects (carried out by company itself) were clearly evident of its efficacy and performance. But, once it gets through the study of Massachusetts General, more hype is expected, making it one of the hottest — yet one of the most classified — stocks in the biotech market.

What are your opinions regarding investment in such emerging
pharmaceutical companies? Comments, ideas or stock pick suggestions are welcome.

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