ICICI Bank showed strength in a lacklustre market as two block deals totaling 1.8 million shares were conducted on the counter early on Thursday.

As a result, the scrip of India's second-largest commercial bank inched up 0.3% to Rs 135.70 on BSE. Volumes reached 1.92 million shares in early trades on the ICICI Bank counter. One block deal itself accounted for 1.2 million shares, another totaled 600,000 shares, according to market sources. The block deals were believed to be executed at a price of about Rs 135 each.

The value of the block deals works out to about Rs 24 crore. The parties involved in the deals are not known.

The scrip currently trades at the lower level of the Rs 130-150 band. It has been hovering in this range over the last few months. Even while being restricted to this band, the counter displayed a degree of volatility.

A few months ago, ICICI Bank announced plans to acquire retail financial services company Transamerica Apple Distribution Finance for around Rs 74 crore. The deal will be finalised after the completion of the audit of accounts of TADF for April-November 2002. Total assets of TADF stood at Rs 2.18 billion as on 31 March 2002, and the company had reported a net profit of Rs 4.6 crore. TADF is primarily engaged in financing two-wheelers and tractors.

ICICI Bank is deemed a major beneficiary from the passage of the Securitisation Bill. As on 31 December 2002, the bank's net non-performing assets were at Rs 3,012 crore (Rs 30.12 billion). The Securitisation Bill allows banks to seize defaulters' assets and hasten recovery from defaulting borrowers without additional court procedures. The bill also paves the way for setting up asset reconstruction companies. Analysts say even partial recovery of NPAs should enhance debt recovery and improve asset quality and profitability.

For the quarter ended 31 December 2002, ICICI Bank earned a net profit of Rs 330.3 crore (Rs 3.3 billion) on a total income of Rs 2,826.53 crore (Rs 28.26 billion). The results for the quarter ended 31 December 2002 include the results of the erstwhile ICICI and its subsidiaries, amalgamated with the bank with effect from 30 March 2002. The financials for the quarter are, therefore, not comparable.

As on 31 December 2002, the bank's non-performing customer assets were at Rs 3012 crore (Rs 30.12 billion), constituting 4.90% of customer assets. The bank continues to focus on restructuring of intrinsically viable companies as well as recovery actions, including the institution of proceedings under the Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act 2002. It also plans to focus on retail banking, and is expected to declare better dividends to its shareholders in the near future. Retail operations contributed 40% to the total revenues of ICICI Bank for the full year ended 31 March 2002.

The bank's capital adequacy as on 31 December 2002 was 12.6% (including Tier-1 capital adequacy of 8.2%).

BSE code: 532174