The net NPA (non-performing assets) ratio of the institution has increased from 7.6 per cent as on March 31 last to 7.8 per cent at the end of the first half. It has also made provisions and write-offs of Rs 189 crore as against Rs 129 crore for the first half of 1997-98. An additional provision of Rs 132 crore has been made towards contingency on account of standard assets in view of the current environment, the release said.

However, the company's press release has added that a comparision of both H1 98-99 results with H1 97-98 results may not be strictly appropriate as the adjustment for alignment of accounting policies of erstwhile ITC Classic with those of ICICI has not beendone.

The profit after tax of Rs 414 crore for the first half of 1997-98 takes into consideration ITC Classic's loss of Rs 74 crore as a part of regular operations, subsequent to the merger effective April 1, 1997. It excludes the extraordinary one-time capital gain of Rs 84 crore on sale of ICICI bank shares, the release said.