ICICI Bank 2005 Annual Report Download - page 49

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Non-interest expense
The following table sets forth, for the periods indicated, the principal components of non-interest expense.
(1) All amounts have been rounded off to the nearest Rs. 10.0 million.
Non-interest expense (excluding direct marketing agency expense and lease depreciation) increased by
25.9% for fiscal 2005 to Rs. 25.17 billion from Rs. 19.99 billion for fiscal 2004 primarily due to 35.0%
increase in employee expenses and 22.5% increase in other administrative expenses.
Employee expenses increased 35.0% to Rs. 7.37 billion in fiscal 2005 from Rs. 5.46 billion in fiscal 2004
primarily due to a 32.5% increase in the number of employees to 18,029 at March 31, 2005 from 13,609 at
March 31, 2004. The increase in number of employees was commensurate with the growth in ICICI Bank’s
retail operations.
Depreciation on own property increased by 12.3% to Rs. 2.93 billion from Rs. 2.61 billion primarily due to
additions to premises of Rs. 2.25 billion and other fixed assets of Rs. 2.83 billion during fiscal 2005.
Other operating expenses increased primarily due to the increased volume of business, particularly in
retail banking and includes maintenance of ATMs, credit card expenses, call centre expenses and
technology expenses. The volume of credit cards issued increased to about 3.3 million at March 31, 2005
from about 2.2 million at March 31, 2004. The number of branches and extension counters increased to
562 at March 31, 2005 from 469 at March 31, 2004. The new branches were largely set up in the last quarter
of the financial year and the full impact on operating expense will be reflected in fiscal 2006. ATMs
increased to 1,910 at March 31, 2005 from 1,790 at March 31, 2004.
47
Management’s Discussion & Analysis
Employee expenses
Depreciation
Rent, taxes & lighting
Printing & stationery
Postage & courier
Repairs & maintenance
Insurance
Bank charges
Others
Total non-interest expense (excluding
lease depreciation and direct marketing
agency expenses)
Depreciation (including lease equalization)
on leased assets
Direct marketing agency expenses
Total non-interest expense
% change
35.0
12.3
24.2
2.3
22.5
13.7
81.8
16.0
29.6
25.9
6.5
65.0
28.3
Fiscal 2005
7.37
2.93
1.85
0.88
1.74
2.16
0.60
0.29
7.35
25.17
2.97
4.85
32.99
Fiscal 2004
5.46
2.61
1.49
0.86
1.42
1.90
0.33
0.25
5.67
19.99
2.79
2.94
25.71
Rs. in billion, except percentages
Dickenson Tel: 022-2625 2282