ICICI Bank 2005 Annual Report Download - page 39

37
direct banking offering using the internet as the access channel. The Bank leveraged India based delivery
skills by outsourcing several back office operations from the UK and Canada subsidiaries to central
processing shops in India. ICICI Bank UK has achieved a profit and set off its accumulated losses, in its first
full year of operations. The Bank has also launched the global remittance initiative, targeting non-Indian
communities, by leveraging its core capabilities of technology based service delivery.
The Bank focused on increasing market share in trade finance by leveraging and further strengthening
correspondent banking relationships. The Bank is now a preferred partner for Indian companies for
syndication of external commercial borrowings and other fund raising in international markets. The Bank
further strengthened correspondent banking relationships with banks in new regions in fiscal 2005 and
launched several products to develop new revenue streams.
The Bank strengthened its international private banking offering to service the wealth management needs
of the large and growing population of affluent and high net worth customers. With a portfolio of in-house
and third party products, the bank has created a holistic product suite across the entire risk spectrum
starting from deposits and bonds to the more complex structured derivative products, private equity and
real estate. The Bank entered into alliances with leading international product providers to offer private
banking solutions.
GROUP COMPANIES
ICICI Prudential Life Insurance Company (ICICI Prudential Life) continued to maintain its market leadership
among private sector life insurance companies, with a retail market share of 34%. Life insurance
companies worldwide require five to seven years to achieve breakeven, in view of business set-up and
customer acquisition costs in the initial years as well as reserving for actuarial liability. The company’s
unaudited New Business Achieved Profit (NBAP) for fiscal 2005 was Rs. 3.12 billion. NBAP represents the
present discounted value of future profit streams from new policies written by the company during the
year, calculated on the basis of certain assumptions as to mortality and other parameters. Internationally,
life insurance companies in the growth phase are valued as a multiple of their NBAP.
ICICI Lombard General Insurance Company (ICICI Lombard) maintained its leadership position among
private sector general insurance companies, with a market share of 25%. ICICI Lombard achieved a profit
after tax of Rs. 0.48 billion in fiscal 2005 and a return on equity of 20%.
ICICI Securities Limited (ICICI Securities) achieved a profit after tax of Rs. 0.64 billion in fiscal 2005 despite a
sharp decline in fixed income gains due to the prevailing interest rate environment. The company made
rapid progress in its equity brokerage and investment banking businesses.
ICICI Venture Funds Management Company Limited (ICICI Venture) strengthened its leadership position in
private equity in India, investing its India Advantage Fund and entering into a joint venture with Tishman
Speyer Properties for investment in real estate. The company’s funds under management were about
Rs. 34.00 billion and it achieved a return on equity of 83%.
The Bank and Prudential plc of UK have agreed that the Bank acquire 6% of the paid-up equity capital of
Prudential ICICI Asset Management Company Limited and Prudential ICICI Trust Limited, consequent to
which these two companies will become subsidiaries of the Bank. Prudential ICICI Mutual Fund is among
India’s two largest private sector mutual funds with funds under management of Rs. 153.00 billion at
March 31, 2005.
Business Overview
Dickenson Tel: [phone]