ICICI Bank 2006 Annual Report Download - page 32

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31
Annual Report 2005-2006
The Corporate Banking Group is responsible for our products and services for large and medium- sized
corporate clients, including credit and treasury products, project finance, structured finance and transaction
banking services.
The Rural and Government Banking Group is responsible for envisioning and implementing our rural
banking strategy, including agricultural banking and micro-finance. It is also responsible for our government
banking initiatives.
The International Banking Group is responsible for our international operations, including our operations
in various overseas markets as well as our products and services for non-resident Indians and our
international trade finance and correspondent banking relationships.
The Corporate Centre comprises all shared services and corporate functions, including transaction
processing and operations, finance and balance sheet management, secretarial, investor relations, risk
management, legal, human resources and corporate branding and communications.
In addition to the above, the Global Principal Investments & Trading Group is responsible for taking
proprietary positions in the Indian and international markets. The Global Markets Group is responsible
for the global client-centric treasury operations. The Structural Rate Risk Management Group is responsible
for taking interest rate views and determining interest rate risk positions for the Bank as a whole.
The Bank also has certain specialised groups namely, Technology Management Group (TMG) which is
responsible for enterprise-wide technology initiatives, Organisational Excellence Group (OEG) which is
responsible for quality initiatives and Social Initiatives Group (SIG) which is responsible for our social
and community development activities.
BUSINESS REVIEW
During fiscal 2006, the Bank continued to grow and diversify its asset base and revenue streams by
leveraging the growth platforms created over the past few years. We consolidated our leadership position
in retail credit, achieved robust growth in our fee income from both corporate and retail customers, grew
our deposit base and significantly scaled up our international and rural operations.
Retail Banking
While we were among the first banks to identify the growth potential of retail credit in India, over the last
few years the banking system as a whole has seen significant expansion of retail credit, with retail loans
accounting for a major part of overall systemic credit growth. We believe that the systemic growth is
driven by sound fundamentals, namely, rising income levels, favourable demographic profile and wide
availability and affordability of credit. At the same time, the retail credit business requires a high level of
credit and analytical skills and strong operations processes backed by 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 and analytical framework.
We are the largest provider of retail credit in India. In fiscal 2006, we maintained and enhanced our
market leadership in every segment of the retail credit business, including home loans, car loans, personal
loans and credit cards. Our total retail disbursements in fiscal 2006 were approximately Rs. 626.00 billion,
compared to approximately Rs. 433.00 billion in fiscal 2005. Our total retail portfolio increased from
Rs. 561.33 billion at March 31, 2005 to Rs. 921.98 billion at March 31, 2006, constituting 63% of our total
loans. We continued our focus on retail deposits to create a stable funding base. At March 31, 2006 we
had more than 17 million retail customer accounts.
During fiscal 2006, we expanded our branch network. At March 31, 2006, we had 614 branches and extension
counters compared to 562 branches and extension counters at March 31, 2005. We continued to expand
our electronic channels, namely Internet banking, mobile banking, call centres, point of sale terminals and
ATMs, and migrate customer transaction volumes to these channels. During fiscal 2006, over 70% of
customer induced transactions took place through these electronic channels. We increased our ATM network