Mumbai:

Kalpana Morparia, joint managing director, ascribed the bank's profits largely to a 43 per cent growth in net interest income and an 83 per cent growth in fee income.

Another factor that aided the bank's profits was low-cost deposits replacing the erstwhile ICICI's high-cost liabilities, she said.

The cost of the liabilities was at 10 per cent. During April-December 2004, Rs5,000 crore worth of these liabilities have been redeemed. Lower cost deposits of around 4 per cent have now replaced these liabilities.

As on December 31, 2004, the erstwhile ICICI's liabilities constituted 18 per cent of the bank's funding compared to 31 per cent at December 31, 2003.

During the quarter ended December 31, 2004, the bank transferred statutory liquidity ratio (SLR) investments amounting to Rs21,348.94 crore from the `available for sale' category to the `held to maturity' category. Due to this, the bank made a provision of Rs182.82 crore to its accounts.

Total income of the bank for the third quarter was at Rs3,269.09 crore (Rs3,032.94 crore). This comprised interest earned at Rs2,378.36 crore (Rs2,219.91 crore) and other income at Rs890.73 crore (Rs813.03 crore). Net interest income grew to Rs733 crore (Rs513 crore).

Total expenditure was at Rs2.497.87 crore (Rs2,352.02 crore). This comprised interest expended at Rs1,645.21 crore (Rs1,706.67 crore) and operating expenses, which were higher at Rs852.66 crore (Rs645.35 crore).

Gross NPAs of the bank were lower at Rs6,240 crore (Rs8,414 crore). Net NPAs of the bank were lower at Rs1,940 crore (Rs3,151 crore).

Home loan disbursements grew to Rs13,147 crore (Rs9,000 crore). The total outstanding loans in the banks home loan portfolio stood at Rs23,500 crore.

Retail assets increased 63 per cent to Rs46,194 crore (Rs28,265 crore) while fee income increased 83 per cent to Rs558 crore (Rs 305 crore).

The bank's capital adequacy at December 31, 2004 was 13.5 per cent