ICICI Bank 2006 Annual Report Download - page 82

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F23
forming part of the Accounts (Contd.)
schedules
The information on securitisation activity of the Bank as an originator as on March 31, 2006 and March 31, 2005 is given in
the table below.
Rupees in million
As on As on
March 31, 2006 March 31, 2005
Outstanding credit enhancement.............................................................. 16,369.2 7,234.3
Outstanding liquidity facility ...................................................................... 2,640.4 —
Outstanding servicing liability ................................................................... 695.6 260.7
Outstanding subordinate contributions .................................................... 8,369.8 17,712.7
8. Employee Stock Option Scheme
In terms of the ESOS, as amended, the maximum number of options granted to any eligible employee in a financial year
shall not exceed 0.05% of the issued equity shares of the Bank at the time of grant of the options and aggregate of all such
options granted to the eligible employees shall not exceed 5% of the aggregate number of the issued equity shares of the
Bank on the date(s) of the grant of options.
In terms of the Scheme, 17,362,584 options (March 31, 2005: 18,215,335 options) granted to eligible employees were
outstanding at March 31, 2006.
A summary of the status of the Bank’s stock option plan is given below.
Stock option outstanding
Year ended Year ended
March 31, 2006 March 31, 2005
Outstanding at the beginning of the year ................................................. 18,215,335 15,964,982
Add: Granted during the year .................................................................... 4,981,780 7,554,500
Less: Forfeited/lapsed during the year .................................................... 931,280 846,496
Exercised during the year............................................................... 4,903,251 4,457,6511
Outstanding at the end of the year ........................................................... 17,362,584 18,215,335
1. Excludes options exercised but not allotted.
9. Preference shares
Certain government securities amounting to Rs. 2,001.1 million (March 31, 2005: Rs.1,952.3 million) have been earmarked
against redemption of preference share capital, which falls due for redemption on April 20, 2018, as per the original issue
terms.
10. Transfer to Investment Fluctuation Reserve (“IFR”)
An amount of Rs. 2,143.4 million being the excess balance in Investment Fluctuation Reserve (IFR) account over the regulatory
requirement was transferred to general reserve account during the year ended March 31, 2005. RBI has subsequently
instructed that this amount should be retained in IFR account itself. Accordingly, the said amount was transferred back to
IFR account from the general reserve account in the first quarter of the year ended March 31, 2006, making IFR account
balance Rs. 7,303.4 million.
RBI required banks to create IFR aggregating to 5% of their investments in fixed income securities (in AFS and Trading
Book) over a five-year period starting from March 31, 2002. Accordingly a further amount of Rs. 5,900.0 million was transferred
to IFR during the year ended March 31, 2006, making the IFR account balance Rs. 13,203.4 million. RBI has vide its circular
DBOD.No. BP.BC. 38/21.04.141/2005-06 dated October 10, 2005 permitted banks that 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 Statutory Reserve, General Reserve or balance of Profit & Loss Account.
Pursuant to the above, the entire IFR account balance of Rs. 13,203.4 million has been transferred from IFR to Revenue and
other Reserves.