ICICI Bank recovered on Monday after a recent battering.

By 12:30 IST, the scrip of India's biggest private sector bank rose by 1.31% to Rs 123.50 on the BSE, recording a volume of over 200,000 shares.

Dealers said the recovery in the ICICI Bank scrip is purely due to the bank's clarification that it has no plans to raise fresh equity capital. However, they feel that the scrip may not sustain its higher levels. Last week, on Wednesday (30 April 2003), the scrip lost over 6% to Rs 121.40 on concerns over equity dilution.

The bank's capital adequacy ratio is at a comfortable position at 12% as against the Reserve Bank of India's stipulated 9%. Analysts feel that some players could have sold the stock heavily last week following lack of short-term triggers.

Meanwhile, dealers said that at the current level, the ICICI Bank scrip looks a good pick following its attractive dividend yield. The bank has recommended a dividend of 75% (Rs 7.50 per share on a face value of Rs 10 per share) for the financial year ended 31 March 2003.

For Q4 ended 31 March 2003 ICICI Bank's net profit jumped by 494% to Rs 337.68 crore (Rs 3.37 billion) on a 233.7% increase in total income to Rs 2,834.44 crore (Rs 28.34 billion). The actual net profit far surpassed capitalmarket.com poll predictions - a net profit between Rs 187.5 crore (Rs 1.87 billion) to Rs 226 crore (Rs 2.26 billion).

For FY 2002-03, the bank posted a net profit of Rs 1,206.18 crore (Rs 12.06 billion) on total income of Rs 12,526.88 crore (Rs 125.26 billion).

The results for the year ended 31 March 2003 include the results of the erstwhile ICICI and its subsidiaries ICICI Personal Financial Services and ICICI Capital Services, amalgamated with the bank with effect from 30 March 2002. The financials for the current period are, therefore, not comparable with earlier periods.

ICICI Bank also said that it achieved market leadership during the year across products in the retail finance segment.

Meanwhile, the bank's international initiative, launched in FY 2002, is proceeding as planned and it is in the process of operationalising its branch in Singapore and representative office in China. It is awaiting overseas regulatory approval for setting up subsidiaries in the United Kingdom and Canada and a representative office in Dubai. The bank already has representative offices in the United States and the United Kingdom.

BSE code: 532174