However, a comparison of results between April-December 1998 with that of 1997 is not strictly appropriate as the Rs 622 crore net profit (of the first three quarters of 1997) has been arrived at after excluding Rs 98 crore worth of extraordinary income on sale of ICICI Bank shares and real estates.

Besides, the institution has not done the adjustment for alignment of accounting policies of erstwhile ITC Classic with those of ICICI. The merger of ITC Classic with ICICI was effective April 1, 1997. The ICICI board approved the audited accounts for the nine-month period on Friday.

During the third quarter ended December 1998, profit after tax was maintained at the same level of Rs 208 crore as the corresponding quarter last year, despite the enhanced provisions andwrite-offs to the extent of Rs 45 crore, an ICICI release said.

The institution has made provisions and write-offs (including write-down of equity investments) to the tune of Rs 302 crore in April-December 1998, registering a massive 53 per cent increase over the corresponding period of the previous year (Rs 197 crore). "Any deterioration in individual credit facilities should be recognised to the greatest extent possible," the release said.

ICICI's net non-performing assets (NPAs) has marginally come down from 7.8 per cent in September to 7.5 per cent in December 1998. The net NPA has increased by Rs 103 crore during the third quarter to Rs 3,343 crore.The institution has recovered bad debt worth Rs 220 crore (the principal dues) during the nine months, up from Rs 164 crore recovered in April-December 1997. Moreover, simple interest dues aggregating Rs 43 crore (Rs 25 crore) have also been collected. "The institution has recovered almost 100 per cent of principal on a cash basis and about 70 per cent ona present value basis on all negotiated settlements," the ICICI release said.

Unlike the Industrial Development Bank of India, ICICI has been able to maintain the growth momentum in sanctions and disbursements during the current fiscal. It has registered a 55 per cent growth in sanctions in the nine-month period at Rs 27,261 crore and 24 per cent growth in disbursements at Rs 13,546 crore.

The infrastructure and oil and gas projects together with non-project corporate finance advances account for 82 per cent of sanctions and 74 per cent of disbursements in the April-December period. Foreign currency loans were only 6 per cent of the total disbursements reflecting the lack of demand for forex funds.