ICICI Bank 2006 Annual Report Download - page 34

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33
Annual Report 2005-2006
We have successfully used technology, both as an enabler and a differentiator, to achieve high penetration
levels in the transaction banking business, contributing to our fee income streams. Our corporate banking
operations hub is ISO 9001 certified. We offer online delivery capability for over 70% of the core finance
functions of any corporate client. We have implemented quality processes across our corporate banking
operations and reduced turnaround times.
The corporate markets group was reorganized into the Global Markets Group, which integrated the client-
centric treasury operations of the Bank in India and overseas. This group focused on delivery of market
solutions such as foreign exchange products, derivatives and market-making in corporate bonds to our
corporate clients. There was significant growth in foreign exchange and derivatives transaction volumes
in fiscal 2006.
We have developed new relationships with medium-sized companies who we believe have the potential
to become large corporations of tomorrow. We believe that medium-sized corporates will play an important
role in the economy and have created a dedicated group for tapping opportunities with mid-cap companies.
We have also restructured our delivery team for transaction banking products by creating dedicated
sales teams for trade services and transaction banking products. This is expected to increase our market
share from transaction banking products translating into a recurring fee income for the Bank.
The resurgence of the Indian economy, the need for infrastructure development and the international
expansion of Indian companies all provide exciting opportunities for our 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 with companies undertaking both
brownfield and greenfield expansions across sectors like infrastructure, oil & gas and manufacturing. We
are uniquely positioned to meet the funding requirements of companies by leveraging our domestic and
overseas presence to offer innovative financing solutions. The key to our project finance proposition is
our constant endeavour to add value to the projects through financial structuring to ensure bankability of
projects. These services are backed by strong due diligence and structuring skills and extensive
relationships with various international sponsors and consultants. Equal emphasis is laid on ensuring
marketable debt structuring. In fiscal 2006, we were the lead arrangers for several major project finance
transactions in the country.
The proposed modernisation, upgradation and expansion of metro and non-metro airports are expected
to provide significant business opportunities in the future. We had assisted the successful bidder for the
modernisation and upgradation of the Delhi international airport. The road sector has been witnessing
increased activity in the form of the various phases of the National Highway Development Project. The
thrust in the port sector is on privatisation and expansion of berths in major ports besides projects for
connecting major ports with the nearest highways and railway stations. In fiscal 2006, we participated in
the financing of the international container terminal project at Cochin.
The telecom sector is expected to see continued growth and consequently large investments in networks
by telecom service providers. The ultra mega power projects announced by the central Government,
besides the increasing interest in hydroelectric generation capacity in the private sector are expected to
continue providing attractive funding opportunities in the power sector. In fiscal 2006, we were the sole
arranger for the largest private sector hydroelectric power project.
The oil and gas sector is witnessing activity across the entire value chain, from exploration and production
through increased private sector participation under the New Exploration Licensing Policy to setting up
of large-scale refineries by both public sector and private sector players. The manufacturing sector is
also seeing fresh capacity additions across sectors such as steel, aluminium, zinc and copper. In fiscal
2006, we were the preferred partner for the capacity expansion of a steel major.