ICICI Bank announces US GAAP Accounts for FY 07 results

ICICI Bank Ltd has announced that the Bank will shortly file its annual report in Form 20-F with the United States Securities Exchange Commission (SEC), incorporating consolidated financial statements under Indian GAAP including a reconciliation of profit after tax and networth under Indian GAAP to net income and stockholders equity under US GAAP, approved by the Audit Committee of the Bank's Board of Directors. The consolidated profit after tax under Indian GAAP was Rs 2,760 crore (US$ 640 million) for the year ended March 31, 2007 (FY2007). As per the reconciliation statement between Indian GAAP and US GAAP, the net income (profit after tax) under US GAAP was Rs 3,127 crore (US$ 726 million) in FY2007, compared to Rs 2,004 crore (US$ 465 million) in the previous year. The Bank's stockholders equity at March 31, 2007 as per US GAAP was Rs 24,098 crore (US$ 5.6 billion) compared to the Indian GAAP consolidated net worth of Rs 23,958 crore (US$ 5.6 billion).

There are significant differences in the basis of accounting between US GAAP and Indian GAAP primarily relating to determination of allowance for loan losses (including for restructured loans & non-performing loans), unrealized gain on venture capital investments, amortization of fees and origination costs, accounting for business combinations, compensation cost, securitization and consolidation. Net income as per US GAAP for the year ended March 31, 2007 was higher than the consolidated profit after tax as per Indian GAAP primarily due to unrealized gains on venture capital investments accounted for in the income statement, lower losses for insurance subsidiaries due to release of actuarial reserves on policies which have lapsed in earlier years and gains on differences in accounting for securitization, under US GAAP, offset in part by amortization of loan origination fees net of costs, and compensation cost on employee stock options.

The stock was trading at Rs.906, up by Rs.4.10 or 0.45%. The stock hit an intraday high of Rs.910 and low of Rs.898. The total traded quantity was 19294 compared to 2 week average of 179540.

Source : Equity Bulls

Keywords