ICICI Bank 2006 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ...' Certificate on Corporate Governance Business Overview Management's Discussion and Analysis Particulars of Employees under Section 217 (2A) of the Companies Act, 1956 2 4 6 6 6 7 28 29 41 55 Financials : Auditors' Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules Statement...

  • Page 3
    ... the early years of this decade, retail credit - the financing of households for asset creation - has been a major growth driver. ICICI Bank has actively participated in this process, and indeed, played a key role in catalysing growth in retail credit. From a new growth horizon five years ago, this...

  • Page 4
    ...delivery of technology-enabled banking services in urban India. We are now extending this to the rural areas, through internet kiosks, specially developed ATMs and smart cards with bio-metric authentication. We are facilitating the creation of a shared technology platform to be used by micro-finance...

  • Page 5
    Letter from the Managing Director & CEO times in this period. The Indian economy today has the same characteristics as these economies in the early years of their growth: favourable demographics, savings rate. Our favourable demographic profile, with 69% of the population being less than 35 years of...

  • Page 6
    ... private sector in life and non-life insurance providers. We have deepened our relationships with the corporate sector to offer a full suite of products like transaction banking, foreign exchange and derivatives apart from working capital loans and project finance. International business, the third...

  • Page 7
    ... Managing Director Senior Management Senior General Managers Bhargav Dasgupta Sanjiv Kerkar Vishakha Mulye, Chief Financial Officer & Treasurer Ramni Nirula Nagesh Pinge Madhabi Puri-Buch K. Ramkumar V. Vaidyanathan Pravir Vohra Jyotin Mehta General Manager & Company Secretary Board Committees...

  • Page 8
    ... of premium on government securities) and after taking into account all expenses. The disposable profit is Rs. 27.28 billion, taking into account the balance of Rs. 1.88 billion brought forward from the previous year. Your Directors have recommended a dividend rate of 85% (Rs. 8.50 per equity share...

  • Page 9
    ... and health, to home, motor and travel insurance. The products are made accessible to customers through a wide network of advisors, bank partners, corporate agents and brokers with the added convenience of being able to buy online. Asset Management Prudential ICICI Asset Management Company offers...

  • Page 10
    ... of services, comprising credit solutions like term loans, working capital (fund based and non-fund based), transaction banking solutions like cash management services, trade finance and forex services, investment services and risk management solutions like derivatives. Corporate Banking ICICI Bank...

  • Page 11
    ... Banking ICICI Bank offers technology-based solutions, financial innovations and multiple delivery channels to meet the financial needs of rural India. Credit Cards ICICI Bank offers a wide range of power packed credit cards to suit different consumer needs and helps millions of Indians live life...

  • Page 12
    ... of insider trading. Demat Accounts ICICI Bank's demat services offer unique features like e-instructions, consolidation, digitally signed statements, mobile requests and corporate benefits tracking. Property Solutions For millions of home buyers across the country, ICICI Bank offers not just...

  • Page 13
    ...to learn banking basics, manage personal finances and have a lot of fun. bank@campus This student banking service gives students access to their account details at the click of a mouse. Plus, the student gets a cheque book, debit card and annual statements. Savings Accounts Convenience is the name...

  • Page 14
    ... features to suit all requirements. Senior Citizen Services A suite of products and services created specially for senior citizens, offering higher interest rates and a host of convenient features including loans against deposits, payable at par cheque books, ATM/debit cards and internet banking...

  • Page 15
    ... of retail and corporate customers. Phone Banking Phone Banking offers 24x7 service across liability, asset and investment products to both retail and corporate customers. Rural Kiosk A network of about 4,300 rural internet kiosks provide access to a range of financial services and products at the...

  • Page 16
    ... account holders, credit card, demat and loan customers. Our internet banking service offers our customers a world of convenience with services such as balance enquiry, transaction history, account statements, bill payments, funds transfers, and accountrelated service requests. Mobile Banking ICICI...

  • Page 17
    ... paid with salary - Rs. 675,000. Perquisites (evaluated as per Income-tax Rules wherever applicable and otherwise at actual cost to the Bank) such as the benefit of the Bank's furnished accommodation, gas, electricity, water and furnishings, club fees, personal insurance, use of car and telephone...

  • Page 18
    ... Members for payment of sitting fees to the Directors had been obtained at the AGM held on August 20, 2005. Information on the total sitting fees paid to each of the non-wholetime Directors during fiscal 2006 for attending Meetings of the Board and Committees is set out in the following table: Name...

  • Page 19
    ... Terms of reference The Committee reviews ICICI Bank's risk management molicies in relation to various risks (mortfolio, liquidity, interest rate, off-balance sheet and omerational risks), investment molicies and strategy and regulatory, commliance issues in relation thereto, customer service...

  • Page 20
    ... of securities and the listing of securities on stock exchanges. Composition The Share Transfer & Shareholders'/Investors' Grievance Committee commrises four Directors and is chaired by M. K. Sharma, an indemendent Director. There were 12 meetings of the Committee during the year. The details of...

  • Page 21
    ... General Meeting Extraordinary General Meeting Tenth Annual General Meeting Day, Date Monday, August 25, 2003 Friday, March 12, 2004 Monday, Semtember 20, 2004 Resolution Delisting of shares and bonds from select stock exchanges Issue of equity shares Amendment to ESOS - for emmloyees/ Directors...

  • Page 22
    ... (Vadodara). The financial results, official news releases and mresentations are also available on the website of ICICI Bank. The Management's Discussion & Analysis forms mart of the Annual Remort. General Shareholder Information Twelfth Annual General Meeting Date Saturday, July 22, 2006 Time...

  • Page 23
    ...' Report ICICI Bank has maid annual listing fees for the relevant meriods on its camital to BSE, NSE and NYSE where its securities are listed. Market Price Information The remorted high and low closing mrices and volume of equity shares of ICICI Bank traded during fiscal 2006 on BSE and NSE are set...

  • Page 24
    ... and network and facilities management services. 3i Infotech has received the ISO-9001 certification for its transaction mrocessing activities. ICICI Bank's equity shares are traded only in dematerialised form. During the year, 2,530,988 equity shares of ICICI Bank were transferred into electronic...

  • Page 25
    ... the equity shares of ICICI Bank are listed. Registrar and Transfer Agents The Registrar and Transfer Agent of ICICI Bank is 3i Infotech Limited. Investor services related queries may be directed to Padmanabhan Iyer at either of the addresses below: 3i Infotech Limited International Infotech Park...

  • Page 26
    Annual Report 2005-2006 Shareholders of ICICI Bank with more than one per cent holding at March 31, 2006 Name of the Shareholder Deutsche Bank Trust Commany Americas (Demositary for ADS holders) Life Insurance Cormoration of India Allamanda Investments Pte. Limited Crown Camital Limited BaMaM Auto ...

  • Page 27
    ... as amended from time to time, the maximum number of omtions granted to any emmloyee/director in a year is limited to 0.05% of ICICI Bank's issued equity shares at the time of the grant, and the aggregate of all such omtions is limited to 5% of ICICI Bank's issued equity shares on the date of the...

  • Page 28
    ..., the domestic and international banking community, investment bankers, rating agencies and stock exchanges for their summort. ICICI Bank would like to take this ommortunity to exmress sincere thanks to its valued clients and customers for their continued matronage. The Directors exmress their deem...

  • Page 29
    Auditors' Certificate on Corporate Governance To The Members of ICICI Bank Limited We have examined the commliance of conditions of Cormorate Governance by ICICI Bank Limited ('the Bank'), for the year ended on March 31, 2006, as stimulated in clause 49 of the Listing Agreement of the said Bank with...

  • Page 30
    ... well as high credit growth. Liquidity conditions have eased subsequently. The investment pipeline and demand for credit continues to be robust, and global developments, external inflows and the fiscal position will be key factors impacting liquidity and interest rates during the current year. India...

  • Page 31
    ..., International Banking, Rural and Government Banking and Corporate Centre. The Retail Banking Group is responsible for our products and services for retail customers and small enterprises including various credit products, liability products, distribution of third party investment and insurance...

  • Page 32
    ... technology. Our retail strategy is centred around a wide distribution network, leveraging our branches and offices, direct marketing agents and dealer and real estate developer relationships; a comprehensive and competitive product suite; technology-enabled back-office processes and a robust credit...

  • Page 33
    ... directors and senior management meets regularly to review our customer service initiatives. We have implemented a structured customer feedback process where feedback is received from customers through e-mail, sms and phone. We conduct regular training programmes for employees to improve customer...

  • Page 34
    ... corporate banking business. ICICI Bank believes that it is well-placed to capitalise on these opportunities by combining its domestic and international balance sheets, and credit and structured financing expertise. Project Finance The Indian economy is witnessing a resurgence in investment activity...

  • Page 35
    ... and traders. Our six primary credit products for the rural retail segment are - micro-finance loans, farmer financing, working capital financing for agri-enterprises, farm equipment financing, commodity based financing and jewel loans. Other financial services like savings, investment and insurance...

  • Page 36
    ... in ICICI Bank. These groups form part of the Corporate Centre, are completely independent of all business operations and are accountable to the Risk and Audit Committees of the Board of Directors. RMG is further organised into the Credit Risk Management Group, Market Risk Management Group, Retail...

  • Page 37
    ... the risk of loss resulting from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices. Our exposure to market risk is a function of our trading and assetliability management activities and our role as a financial intermediary in customer-related transactions...

  • Page 38
    .... The leadership development process involves personal investment of time by the wholetime Directors and senior management in mentoring high potential managers. The American Society for Training & Development, an organisation that benchmarks HR practices internationally, has acknowledged ICICI Bank...

  • Page 39
    ...by leveraging technology across various channels like internet banking, ATMs, point of sales, call centre, interactive voice response and branch offices. In fiscal 2006, we re-designed our internet banking site and received very encouraging feedback from our customers. We expanded our ATM network to...

  • Page 40
    ...Moody's) Standard & Poor's (S&P) Credit Analysis & Research Limited (CARE) Investment Information and Credit Rating Agency (ICRA) CRISIL Limited ORGANISATIONAL EXCELLENCE The Organisational Excellence Group, headed by a Senior General Manager who reports to the Managing Director & CEO, is engaged in...

  • Page 41
    ... business strategies, specific products and technology focus. "Bank of the Year Award for India" by The Banker "Best Bank in India" by Euromoney "Best Integrated Consumer Bank Site in Asia" by Global Finance "Best Consumer Internet Bank in India" by Global Finance "Best Corporate / Institutional...

  • Page 42
    ... and services and growth in fees from corporate customers. Treasury income increased by 30.5% to Rs. 9.28 billion in fiscal 2006 from Rs. 7.11 billion in fiscal 2005 primarily due to increase in the profit on sale of equity investments. Operating expenses (excluding depreciation on leased assets and...

  • Page 43
    Management's Discussion & Analysis Operating results data The following table sets forth, for the periods indicated, the operating results data. Rs. in billion, except percentages Fiscal 2005 Interest income Interest expense Net interest income Non-interest income - Fee income(1) Lease income Others...

  • Page 44
    ... year, Reserve Bank of India (RBI) issued guidelines on accounting for securitisation of standard assets. In accordance with these guidelines, with effect from February 1, 2006, the Bank accounts for any loss arising on securitisation immediately at the time of sale and the profit/ premium arising...

  • Page 45
    ...2005 primarily due to growth in credit card fees and third-party product distribution fees, increase in income from remittances and other fees from international banking business and growth in corporate banking fees. During fiscal 2006, retail products and services contributed about 58% of total fee...

  • Page 46
    ... in retail banking and includes maintenance of ATMs, credit card related expenses, call centre expenses and technology expenses. The number of savings accounts increased to about 8.9 million at March 31, 2006 from about 7.5 million at March 31, 2005. The number of credit cards issued increased to...

  • Page 47
    ...deferred tax asset on carry forward capital losses based on its firm plans that sufficient future taxable capital gains will be available against which the losses can be set off. Financial condition The following table sets forth, for the periods indicated, the summarised balance sheet of ICICI Bank...

  • Page 48
    ... 31, 2005, as a result of the equity capital of Rs. 80.01 billion raised during the year and the retained profit for the year. Total deposits increased 65.4% to Rs. 1,650.83 billion at March 31, 2006 from Rs. 998.19 billion at March 31, 2005. ICICI Bank's savings account deposits increased 83.8% to...

  • Page 49
    ... to enable customers to transfer, modify or reduce their foreign exchange and interest rate risk and to manage its own interest rate and foreign exchange positions. These instruments are used to manage foreign exchange and interest rate risk relating to specific groups of on-balance sheet assets and...

  • Page 50
    ...-weighted assets for credit risk and market risk for held for trading and available for sale categories of investments at March 31, 2006, to transfer the balance in the Investment Fluctuation Reserve (IFR) 'below the line' in the profit and loss appropriation account to statutory reserve, general...

  • Page 51
    ....98 Automobile loans Commercial business loans Personal loans Other retail loans Total (1) Net of provisions and write off. (2) Includes commercial real estate. As per applicable RBI guidelines, the exposure ceiling for a single borrower is 15.0% of total capital funds and for a group of borrowers...

  • Page 52
    ... out of order for a period of 90 days and a bill is classified as non-performing if the account remains overdue for more than 90 days. Further, non-performing assets are classified into sub-standard, doubtful and loss assets. RBI has issued separate guidelines for restructured loans. A fully secured...

  • Page 53
    ... was 63.7%. The Bank's investments in security receipts issued by Asset Reconstruction Company (India) Limited, a reconstruction company registered with RBI, were Rs. 21.22 billion at March 31, 2006. Classification of Non-Performing Loans by Industry The following table sets forth the classification...

  • Page 54
    ..., factoring, lease financing, working capital finance and foreign exchange services to clients. Further, it provides deposit and loan products to retail customers. The investment banking segment includes treasury operations. Consumer & Commercial Banking Segment Profit before tax of the...

  • Page 55
    ... ICICI Securities Limited ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited Prudential ICICI Asset Management Company Limited ICICI Bank UK Limited ICICI Bank Canada ICICI...

  • Page 56
    ... Officer, Canara Bank Junior Executive, BHEL, Hyderabad - Head Agency Business, DGP Windsor Adviser to Chairman, Bakrie Group, Indonesia Executive, SRF Limited India Telecomp Limited Zonal Manager, Standard Chartered Bank Director-Operations, Asian Finance & Investment Honda Siel Cars Asst...

  • Page 57
    ... India - State Bank of India Zonal Head West, Tata AIG Life Insurance Regional Business Head, SBI Cards Officer MII, Canara Bank Officer SMIV, State Bank of Bikaner & Jaipur Director, Anik Financial Officer, State Bank of India Research Director, MARG CEO, IRIS Limited Manager Operations, GE Capital...

  • Page 58
    ... of the year. On secondment/deputation to other organisations. Nature of employment contractual, other employees are in the permanent employment of the Bank, governed by its rules and conditions of service. Designation/Nature of Duties - Abbreviations - Managing Director & Chief Executive Officer...

  • Page 59
    financials

  • Page 60
    auditors' report to the members of ICICI Babk Limited 1. We have audited the attached balance sheet of ICICI Bank Limited (the 'Bank') as at March 31, 2006 and also the profit and loss account and cash flow statement for the year ended on that date annexed thereto. These financial statements are the...

  • Page 61
    ...,053 As ob 31.03.2006 (Rs. ib '000s) As on 31.03.2005 ASSETS Cash and balance with Reserve Bank of India ...Balances with banks and money at call and short notice ...Investments ...Advances ...Fixed Assets ...Other Assets ...TOTAL ASSETS 6 7 8 9 10 11 89,343,737 81,058,508 715,473,944 1,461,631,089...

  • Page 62
    ...Transfer from Investment Fluctuation Reserve ...Transfer to Special Reserve ...Transfer to Revenue and other reserves ...Proposed equity share dividend ...Proposed preference share dividend ...Corporate dividend tax ...Balance carried over to balance sheet ...TOTAL ...Significant accounting policies...

  • Page 63
    ... application money) ...Income received on such investments ...Purchase of fixed assets ...Proceeds from sale of fixed assets ...(Purchase) / sale of held to maturity securities ...Net cash geberated from ibvestibg activities ...(B) Cash flow from fibabcibg activities Proceeds from issue of share...

  • Page 64
    ... equity shares) Share capital suspense [net] [Represents application money received for Nil equity shares (March 31, 2005: 22,470 equity shares) of Rs. 10 each on exercise of employee stock options] TOTAL EQUITY CAPITAL ...Preference Share Capital 2 [Represents face value of 350 preference shares of...

  • Page 65
    ...in profit and loss account ... TOTAL RESERVES AND SURPLUS ... 1. Includes :a) Rs. 48,940.0 million (net of share premium in arrears of Rs. 92.4 million (March 31, 2005: Rs. Nil) consequent to public issue vide prospectus dated December 8, 2005. b) Rs. 22,134.6 million consequent to issue of ADS vide...

  • Page 66
    ... of bonds carrying maturity of 1 to 30 years from the date of placement ...Bonds issued under multiple option/safety bonds series - Regular interest bonds ...- Deep discount bonds ...- Bonds with premium warrants ...- Encash bonds ...- Tax saving bonds ...- Pension bonds ...Application money pending...

  • Page 67
    ...,193 63,449,004 TOTAL CASH AND BALANCES WITH RESERVES BANK OF INDIA ... SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I. In India i) Balances with banks a) b) ii) a) b) in current accounts ...in other deposit accounts ...with banks ...with other institutions ...4,402,861 6,185...

  • Page 68
    ... ii) iii) I. Bills purchased and discounted ...Cash credits, overdrafts and loans repayable on demand ...Term loans ...Securitisation, finance lease and hire purchase receivables 1 ...Secured by tangible assets [includes advances against book debt] Covered by Bank/Government Guarantees ...Unsecured...

  • Page 69
    ...year ...Depreciation to date, accumulated lease adjustment and provisions ...Net block ...TOTAL FIXED ASSETS ...SCHEDULE 11 - OTHER ASSETS I. Inter-office adjustments (net) ...II. Interest accrued ...III. Tax paid in advance/tax deducted at source (net) ...IV. Stationery and stamps ...V. Non-banking...

  • Page 70
    ......TOTAL OTHER INCOME ...1. Includes profit/(loss) on sale of assets given on lease. SCHEDULE 15 - INTEREST EXPENDED I. Interest on deposits ...II. Interest on Reserve Bank of India/inter-bank borrowings 1 ...III. Others (including interest on borrowings of erstwhile ICICI Limited) ...TOTAL INTEREST...

  • Page 71
    ... accounting and reporting policies of ICICI Bank used in the preparation of these financial statements conform to Generally Accepted Accounting Principles ("GAAP") in India, the guidelines issued by Reserve Bank of India ("RBI") from time to time and practices generally prevalent within the banking...

  • Page 72
    ... guidelines. g) Profit on sale of investments in the 'Held to Maturity' category is credited to the profit and loss account and is thereafter appropriated (net of applicable taxes and statutory reserve requirements) to Capital Reserve. h) At the end of each reporting period, security receipts issued...

  • Page 73
    ..., the Bank accounts for any loss arising on sale immediately at the time of sale and the profit/premium arising on account of sale is amortised over the life of the securities issued or to be issued by the special purpose vehicle/special purpose entity to which the assets are sold. Fixed assets abd...

  • Page 74
    ... the Life Insurance Corporation of India. In accordance with the gratuity fund's rules, actuarial valuation of gratuity liability is calculated based on certain assumptions regarding rate of interest, salary growth, mortality and staff turnover. ICICI Bank contributes 15% of the total annual salary...

  • Page 75
    ... using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period, except where the results are anti-dilutive. 14. Cash abd cash equivalebts Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money...

  • Page 76
    ... year. 4. Earbibgs Per Share The Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20, "Earnings per Share". Basic earnings per share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year...

  • Page 77
    .... Rupees in million except per share data Year ebded March 31, 2006 Basic Weighted average no. of equity shares outstanding ...Net profit ...Basic earnings per share (Rs.) ...Diluted Weighted average no. of equity shares outstanding ...Net profit ...Diluted earnings per share (Rs.) ...Nominal value...

  • Page 78
    ...) and commission of Rs. 9.9 million (March 31, 2005: Rs. 5.3 million) on account of guarantees and letters of credit issued for subsidiaries. Lease of premises abd facilities During the year ended March 31, 2006, the Bank charged an aggregate amount of Rs. 443.7 million (March 31, 2005: Rs. 432...

  • Page 79
    ... whole-time directors of the Bank during the year ended March 31, 2006 was Rs. 75.9 million (March 31, 2005: Rs. 60.5 million). Letter of Comfort The Bank has issued letters of comfort on behalf of its foreign subsidiaries namely, ICICI Bank UK Limited and ICICI Bank Canada Limited. The details of...

  • Page 80
    ...Whole-time directors and relatives. Includes call money lent. Includes letter of undertaking. Excludes letter of comfort issued on behalf of foreign subsidiaries, details of which are given separately. The balances payable to/ receivable from subsidiaries/ joint ventures/ associates/ key management...

  • Page 81
    ... ICICI Investment Management Company Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Bank UK Limited, ICICI Bank Canada, ICICI Prudential Life Insurance Company Limited, ICICI Distribution Finance Private Limited (ICICI Distribution Finance Private Limited has merged with ICICI...

  • Page 82
    ...have maintained capital of at least 9% of the risk weighted assets for both credit risk and market risk for both held for trading and available for sale categories of investments as on March 31, 2006, to transfer the balance in the IFR 'below the line' in the Profit and Loss Appropriation Account to...

  • Page 83
    ... private placement of bonds. The details of these bonds are given below. Rupees in million Particulars Date of Issue Coupob Rate (%) Tebure Amoubt Tranche 3 Option I March 31, 2006 8.83% Annual 10 years and 15 days 2,500.0 Tranche 2 Option I March 25, 2006 8.80% Annual 9 years 11 months 20,000.0 and...

  • Page 84
    ... reported under columns (a), (b), (c), and (d) above are not mutually exclusive. 2. This excludes investments, amounting to Rs. 2,554.8 million, in preference shares of subsidiaries, namely ICICI Bank UK Limited and ICICI Bank Canada and Rs. 32,644.2 million invested by overseas branches/offshore...

  • Page 85
    ... 1. Amounts reported under columns (a), (b), (c), and (d) above are not mutually exclusive. 2. This excludes investments, amounting to Rs. 2,551.3 million, in preference shares of subsidiaries, namely ICICI Bank UK Limited and ICICI Bank Canada and Rs. 7,189.6 million invested by overseas branches...

  • Page 86
    ... above 40% of capital funds. b) As on March 31, 2005 the Bank had taken single borrower exposure above 15% with the approval of the Board of Directors in the cases given below. Name of Borrower Bharat Heavy Electricals Limited ...Essar Oil Limited ...Asset Reconstruction Co. of India Limited ("ARCIL...

  • Page 87
    ...funded assets. As the net funded exposure to United Kingdom exceeds 1%, the Bank has made a provision of Rs. 63.6 million on country exposure during the year ended March 31, 2006. Rupees... ...High ...Very High ...Restricted ...Off-Credit ...Total ...- of which funded ... 19. Advabces The details of...

  • Page 88
    ... in respect of accounts transferred in earlier years1 ...E Aggregate gain/(loss) over net book value ...(727.7) (2,417.0) 1. During the year ended March 31, 2006, ARCIL fully redeemed security receipts of four trusts and partly redeemed security receipts of two trusts. The Bank realised Rs. 95...

  • Page 89
    ... and not later than five years ...Later than five years ...Total 25.2 Assets ubder fibabce lease The details of finance leases are given below. Period Total of future minimum lease payments ...Present value of lease payments ...Unmatured finance charges ...Maturity profile of total of future minimum...

  • Page 90
    ... capital gains will be available against which the loss can be set off. 29. Other Assets 29.1 Exchabge fluctuatiob Exchange fluctuation aggregating Rs. 25.0 million (March 31, 2005: Rs. 244.7 million), which arises on account of rupee-tying agreements with the Government of India, is held in "Rupee...

  • Page 91
    ...the Board ("RCB") reviews the Bank's risk management policy in relation to various risks (portfolio, liquidity, interest rate, off-balance sheet and operational risks), investment policies and compliance issues in relation thereto. The RCB comprises of independent directors and the Managing Director...

  • Page 92
    ... the estimated replacement cost of swap contracts at balance sheet date. At March 31, 2006 the fair value of trading rupee interest rate swap contracts is Rs. 922.4 million (March 31, 2005: Rs. 333.6 million). Associated credit risk is the loss that the Bank would incur in case all the counter...

  • Page 93
    ...ii) Losses which would be incurred if all counter-parties failed to fulfil their obligations under the agreements ...iii) Collateral required by the Bank upon entering into swaps ...iv) Concentration of credit risk arising from the rupee swaps ...v) The fair value of rupee trading swap book 2 ...As...

  • Page 94
    ...to the current year presentation. Signatures to Schedules 1 to 18 For and on behalf of the Board of Directors N. VAGHUL Chairman LALITA D. GUPTE Joint Managing Director CHANDA D. KOCHHAR Deputy Managing Director Place : Mumbai Date : April 29, 2006 VISHAKHA MULYE Chief Financial Officer & Treasurer...

  • Page 95
    ... profits/(losses) of ICICI Bank UK Limited and ICICI International Limited for the year ended March 31, 2006 have been translated into Indian Rupees at the rate of 1 USD = Rs. 44.2729. Pursuant to the scheme of amalgamation of ICICI Distribution Finance Private Limited (IDFL) with ICICI Home Finance...

  • Page 96
    Consolidated financial statements of ICICI Bank Limited and its subsidiaries F37

  • Page 97
    ... and joint ventures (the 'Group') as at March 31, 2006, and also the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the ICICI Bank Limited's management and have been...

  • Page 98
    ... and fair view in conformity with the accounting principles generally accepted in India : a) in the case of the consolidated balance sheet, of the state of affairs of the Group as at March 31, 2006; b) in the case of the consolidated profit and loss account, of the profit for the year ended on that...

  • Page 99
    ...,613 As ob 31.03.2006 (Rs. ib '000s) As on 31.03.2005 ASSETS Cash and balance with Reserve Bank of India ...Balances with banks and money at call and short notice ...Investments ...Advances ...Fixed assets ...Other assets ...TOTAL ASSETS ...6 7 8 9 10 11 89,859,352 92,691,597 840,138,822 1,562,603...

  • Page 100
    ...Transfer from Investment Fluctuation Reserve ...Transfer to Special Reserve ...Transfer to Revenue and other reserves ...Proposed equity share dividend ...Proposed preference share dividend ...Corporate dividend tax ...Balance carried over to Balance Sheet ...TOTAL ...Significant accounting policies...

  • Page 101
    ...) / refund of taxes (net) ...Net cash geberated from operatibg activities ...Cash flow from ibvestibg activities Purchase of fixed assets ...Proceeds from sale of fixed assets ...(Purchase) / sale of long-term investments ...Acquisition of subsidiaries (net of cash acquired) ...(A) Year ebded 31.03...

  • Page 102
    ...67,323 equity shares) ...Share capital suspense [net] [Represents application money received for Nil equity shares (March 31, 2005: 22,470 equity shares) of Rs. 10 each on exercise of employee stock options] ...TOTAL EQUITY CAPITAL ...Preference Share Capital [Represents face value of 350 preference...

  • Page 103
    ... of the green shoe option vide prospectus dated December 8, 2005. d) Rs. 725.6 million (March 31, 2005: Rs. 602.5 million) on exercise of employee stock options. 2. Represents share issue expenses amounting to Rs. 874.1 million, written-off from the share premium account as per the objects of the...

  • Page 104
    ... of bonds carrying maturity of 1 to 30 years from the date of placement . Bonds issued under multiple option/safety bonds series Regular interest bonds ...Deep discount bonds ...Bonds with premium warrants ...Encash bonds ...Tax saving bonds ...Pension bonds ...d) II. i) Application money pending...

  • Page 105
    ...,103 63,701,428 TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA ... SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I. In India i) Balances with banks a) b) ii) a) b) in current accounts ...in other deposit accounts ...with banks ...with other institutions ...4,606,958 7,870...

  • Page 106
    ... of life insurance business of Rs. 70,788.5 million (March 31, 2005: Rs. 26,540.6 million). SCHEDULE 9 - ADVANCES (bet of provisiobs) A. i) ii) iii) iv) Bills purchased and discounted ...Cash credits, overdrafts and loans repayable on demand ...Term loans ...Securitisation, finance lease and...

  • Page 107
    ...certain non-banking assets acquired in satisfaction of claims which are in the process of being transferred in the Bank's name. 2. Includes debit balance in profit and loss account of Rs. 2,435.6 million (March 31, 2005: Rs. 908.8 million) including debit balance in profit and loss account for joint...

  • Page 108
    ......V. Profit/(loss) on foreign exchange transactions (net) ...VI. Income pertaining to insurance business ...VII. Miscellaneous income (including lease income) ...TOTAL OTHER INCOME ...1. Includes profit/(loss) on sale of assets given on lease. SCHEDULE 15 - INTEREST EXPENDED I. Interest on deposits...

  • Page 109
    ...group providing a wide range of banking and financial services including retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. The Bank was incorporated in Vadodara, India...

  • Page 110
    .../ residence ICICI Eco-net Internet & Technology Fund India ICICI Equity Fund India ICICI Emerging Sectors Fund India ICICI Strategic Investments Fund India ICICI Prudential Life Insurance India Company Limited ICICI Lombard General Insurance Company Limited Prudential ICICI Asset Management Company...

  • Page 111
    ... were exchanged for newly issued ADSs and accordingly the offering did not result in an increase in share capital of the Bank. A. 1. SIGNIFICANT ACCOUNTING POLICIES Foreigb currebcy trabsactiobs The consolidated financial statements are reported in Indian rupees (Rs.), the national currency of India...

  • Page 112
    ...in relation to public issues/ other securities is recognised based on mobilisation and terms of agreement with the client. The Bank follows trade date method for accounting of its investments. Life insurance premium is recognised as income when due. Premium on lapsed policies is recognised as income...

  • Page 113
    ... income will be available against which the loss can be set off. Deferred tax assets and liabilities are computed at individual company level and aggregated for consolidated reporting. 5. Claims abd bebefits paid In case of general insurance business, claims comprise claims paid, estimated liability...

  • Page 114
    ...the Life Insurance Corporation of India. In accordance with the gratuity fund's rules, actuarial valuation of gratuity liability is calculated based on certain assumptions regarding rate of interest, salary growth, mortality and staff turnover. ICICI Bank contributes 15.0% of the total annual salary...

  • Page 115
    .... Profit on sale of investments in the 'Held to Maturity' category is credited to the profit and loss account and is thereafter appropriated (net of applicable taxes and statutory reserve requirements) to capital reserve. At the end of each reporting period, security receipts issued by the asset...

  • Page 116
    ... interest rate basis through the profit and loss account over the period to maturity. The Company's Canadian banking subsidiary classifies its investments into investment account securities or trading account securities. Investment account securities comprise debt and equity securities, originally...

  • Page 117
    ... is charged over the estimated useful life of a fixed asset on a straight-line basis, except for those relating to venture capital, investment banking and asset management subsidiaries where depreciation is charged on a written down value basis. The rates of depreciation for fixed assets, which...

  • Page 118
    ... currency and rupee derivatives, which are entered for trading purposes, are marked to market and the resulting gain/loss, (net of provisions, if any) is recorded in the profit and loss account. During the year the Bank changed its method for testing hedge effectiveness from the price value of basis...

  • Page 119
    ...: Rupees in million except per share data Year ebded March 31, 2006 Basic Weighted average no. of equity shares outstanding ...Net profit ...Basic earnings per share (Rs.) ...Diluted Weighted average no. of equity shares outstanding ...Net profit ...Diluted earnings per share (Rs.) ...Nominal value...

  • Page 120
    ... Key Management Personnel 1 24.9 15.4 Nil 4.3 Nil Nil Total 30.2 15.4 33.5 4.3 Nil Nil The following balances represent the maximum balance payable to/receivable from related parties during the period ended March 31, 2006: Rupees in million Items/Related Party Deposits with ICICI Bank ...Advances...

  • Page 121
    ... balance payable to/receivable from related parties during the year ended March 31, 2005: Rupees in million Items/Related Party Deposits with ICICI Bank ...Advances ...Investments of ICICI Bank ...Investments of related parties in ICICI Bank ...Receivables ...Payables ...1. Whole- time directors...

  • Page 122
    ... later than five years ...Later than five years ...Total ...5.3 Assets giveb ubder fibabce lease The future lease rentals are given below: Rupees in million Period Total of future minimum lease payments ...Present value of lease payments ...Un-matured finance charges ...Maturity profile of total of...

  • Page 123
    ...have maintained capital of at least 9% of the risk weighted assets for both credit risk and market risk for both held for trading and available for sale categories of investments as on March 31, 2006, to transfer the balance in the IFR 'below the line' in the profit and loss appropriation account to...

  • Page 124
    ...-net Internet & Technology Fund, ICICI Equity Fund, ICICI Strategic Investments Fund, ICICI Emerging Sectors Fund and ICICI International Limited. Others comprises of ICICI Lombard General Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, Prudential ICICI Asset Management...

  • Page 125
    ...with its accounting policy for direct marketing agency/ associate expenses. Accordingly, subvention income has been accounted for in the period in which it is received instead of over the period of the loan. As a result of the change in policy, the impact on profit after tax for the year ended March...

  • Page 126
    ... In case of the Bank's venture fund management company, the company has revised the method of providing depreciation on premises taken on lease from written down value method to amortising the same on straight-line basis over lease period. As a result the depreciation for the year is higher by Rs...

  • Page 127
    ... into Indian Rupees as per the provisions of AS 11 (revised)-Accounting for the Effects of changes in Foreign Exchange Rates issued by the Institute of Chartered Accountants of India. 3. The paid-up share capital of ICICI Home Finance Company Limited, ICICI Bank Canada and ICICI Bank UK Limited...

  • Page 128
    Reconciliation to US GAAP and related notes for the year ended March 31, 2006 F69

  • Page 129
    ... which would result from the application of US GAAP: 1. Net ibcome recobciliatiob Rupees ib milliob Note Cobsolidated profit after tax as per Ibdiab GAAP Adjustments on account of : Allowance for loan losses Business combinations Consolidation Valuation of debt and equity securities Amortisation of...

  • Page 130
    ... in the discount rates and cash flows used for computing allowances created on restructured loans under Indian GAAP and US GAAP . Provisions on sale of certain loans to an asset reconstruction company not accounted for as sale under US GAAP . The loss on assets transferred to an asset reconstruction...

  • Page 131
    ... transferred certain impaired loans to borrower specific funds/trusts managed by an asset reconstruction company against the issuance of security receipts by the funds/trusts. The funds/trusts have been set up by the asset reconstruction company under enacted debt recovery legislation in India...

  • Page 132
    ... useful life of intangible assets is as follows: No. of years Customer-related intangibles ...Other intangibles ...3-10 5 In fiscal 2006, the Company recorded goodwill under US GAAP of Rs. 1,196.8 million in relation to the acquisitions of software, business process outsourcing and asset management...

  • Page 133
    ... Opening balance ...Goodwill relating to acquisitions consummated during the period ...Closibg balabce 5,403.0 2,004.0 7,407.0 7,407.0 1,196.8 8,603.8 The estimated amortisation schedule for intangible assets under US GAAP , on a straight line basis, for the next five years is set out below. Rupees...

  • Page 134
    ... are those costs that vary with, and are primarily related to the acquisition of new and renewal insurance contracts i.e. commissions, policy issue expenses, etc. Under Indian GAAP , these costs are expensed in the profit and loss account while under US GAAP the same is amortised over the...

  • Page 135
    ... gains and losses are transferred to the fair value change account grouped under Revenue and Other Reserves. Under US GAAP the unrealised gains or losses on trading assets are recognised in the profit and loss account and the unrealised gains or losses on securities classified as 'available for sale...

  • Page 136
    ... and accordingly are accounted for as trading derivatives. Under US GAAP the Company has designated certain derivatives as fair value hedges of certain interest bearing assets and liabilities under SFAS No. 133. There are no cash flow hedges or hedges of net investments in foreign operations. At the...

  • Page 137
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