ICICI Bank 2008 Annual Report Download - page 63

Towards a better life
At year-end fiscal 2008, the gross non-performing assets (net of write-offs and interest suspense) were Rs. 75.88
billion compared to Rs. 41.68 billion at year-end fiscal 2007. Gross of technical write-offs, the gross non-performing
assets at year-end fiscal 2008 were Rs. 83.50 billon compared to Rs. 48.50 billion at year-end fiscal 2007. Net
non-performing assets were Rs. 35.64 billion at year-end fiscal 2008 compared to Rs. 20.19 billion at year-end
fiscal 2007. The ratio of net non-performing assets to net customer assets increased to 1.49% at year-end fiscal
2008 compared to 0.98% at year-end fiscal 2007. The coverage ratio (i.e. total provisions and technical write-offs
made against non-performing assets as a percentage of gross non-performing assets) at year-end fiscal 2008 was
57.3%. In addition, total general provision held against standard assets was Rs. 14.55 billion at year-end fiscal
2008. During the year, we sold some of our NPAs, including retail NPAs. Our aggregate investments in security
receipts issued by Asset Reconstruction Company (India) Limited, a reconstruction company registered with RBI
were Rs. 28.53 billion at year-end fiscal 2008. Our net restructured standard loans were Rs. 46.84 billion at year-
end fiscal 2008 compared to Rs. 48.83 billion at year-end fiscal 2007.
The increase in non-performing assets was due to higher level of non-performing assets in the retail portfolio due
to change in the portfolio mix towards non-collateralised loans and seasoning of the loan portfolio and increase
in non-performing loans in rural segment. At year-end fiscal 2008, the net non-performing assets in the retail
portfolio at year-end fiscal 2008 were 1.83% of net retail loans. The net non-performing loans in the collateralised
retail portfolio were 0.97% of net collateralised retail loans and net non-performing loans in the non-collateralised
retail portfolio (including overdraft financing against automobiles) were about 6.16% of the net non-collateralised
retail loans.
Classification of Non-Performing Assets by Industry
The following table sets forth, at March 31, 2007 and March 31, 2008, the composition of gross non-performing
assets by industry sector.
Rs. in billion, except percentages
March 31, 2007 March 31, 2008
Amount % Amount %
Retail finance1Rs. 31.14 73.8% Rs. 55.52 71.8%
Chemicals & fertilisers 1.64 3.9 1.93 2.5
Services – finance 0.72 1.7 1.29 1.7
Iron/ steel & products 0.77 1.8 1.21 1.6
Textiles 0.84 2.0 1.10 1.4
Shipping 0.01 — 1.01 1.3
Food & beverages21.25 3.0 0.61 0.8
Electronics & engineering 0.63 1.5 0.56 0.7
Services – non finance 0.63 1.5 0.41 0.5
Power — — 0.14 0.2
Metal & metal products 0.01 — 0.12 0.2
Automobile (including trucks) 0.06 0.1 0.08 0.1
Paper and paper products 0.07 0.2 0.04 0.1
Cement — — 0.03 —
Other Industries34.42 10.5 13.29 17.1
Total 42.19 100.0% 77.34 100.0%
Interest suspense (0.51) (1.46)
Gross NPAs Rs. 41.68 Rs. 75.88
1. Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, credit cards, dealer funding
and developer financing.
2. Includes sugar & tea.
3. Other industries primarily include construction, rubber and rubber products, crude petroleum, drugs & pharmaceuticals, gems &
jewellery, FMCG, mining, and other agriculture and allied activities.
4. All amounts have been rounded off to the nearest Rs. 10.0 million.
Annual Report 2007-2008 61
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