Universal Bank

While industry circles and analysts reckon that the financial sector prospects are bright in the medium term, ICICI is striving to position itself competitively in the field. The company's efforts to diversify into a host of activities like commercial banking, asset management, investor services and custodial services will now start paying returns.

That ICICI's key strength is its steady asset growth with focus on asset quality cannot be debated upon. At a compounded annual growth rate of 21 per cent, the net assets stand at Rs 22,031 crore for 1995-96, up over the previous year's Rs 18,339 crore. Disbursals towards project-related finance has shot up 50 per cent, to Rs 5,260 crore.

 

However, the company's conscious attempt to cut back non-project finance has resulted in a sharp decline in disbursals in this segment from Rs 2,115 crore to Rs 411 crore.

More important, ICICI's asset quality determines the continued success of a mega financial institution. The ratio of non-performing assets (NPAs) to total loans has steadily declined from 9 per cent in 1992-93 to 6.7 per cent in 1995-96.