ICICI Bank 2003 Annual Report Download - page 26

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24
Manufacturing Sector
Fiscal 2003 saw the overall investment climate in the country turning positive, with the Index
of Industrial Production (IIP) recording a turnaround from the decline witnessed in the preceding
two years. The manufacturing sector, accounting for a significant proportion of the IIP, recorded
an improved performance in fiscal 2003, with growth in both capital goods production and
consumer goods production. The buoyancy in the economy observed during fiscal 2003
resulted in a number of projects taking off in the manufacturing and core sector, particularly
in the metals, transport equipment and food products segments.
Our focus in the manufacturing sector is on projects sponsored by entities that have proven
ability to commit the required financial resources and implement projects successfully within
planned time-frames. We also continue to implement tighter security measures, such as
security interests in project contracts and escrow accounts to capture cash flows. We believe
that there is significant scope for consolidation in several segments in the manufacturing
sector, which presents opportunities for structuring and syndicating acquisition financing.
Special Assets Management
The Special Asset Management Group (SAMG) was formed in fiscal 1998 to build in-house
specialised skills in restructuring/recovery activities, restructuring viable projects and seeking
early exits from unviable projects. During fiscal 2003, the operationalization of RBI’s Corporate
Debt Restructuring (CDR) forum, the enactment of the SARFAESI Act and the improvement
in performance of key industrial sectors created a positive environment for asset resolution.
International Business
International business has been identified as a key growth driver for ICICI Bank. We believe
that the development of a strong international presence would enable us to diversify risks
across geographies, support the cross-border needs of our customers, accelerate growth
and profitability and build domestic capabilities to match international standards. The initial
international strategy is based on leveraging our India linkages – be it catering to the varied
financial requirements of Non-resident Indians (NRIs), cross-border financing and trade
requirements of Indian corporates or India-related business requirements of multinational
corporations and banks.