ICICI Bank 2007 Annual Report Download - page 96

F26
Rupees, except number of shares
Stock options outstanding
Year ended Year ended
March 31, 2007 March 31, 2006
Particulars Number of Weighted Average Number of Weighted Average
shares Exercise Price shares Exercise Price
Outstanding at the beginning of the year 17,362,584 262.60 18,215,335 207.33
Add: Granted during the year 6,439,900 582.26 4,981,780 362.12
Less: Forfeited/lapsed during the year 1,127,650 422.81 931,280 261.89
Exercised during the year1 9,487,051 210.47 4,903,251 158.50
Outstanding at the end of the year 13,187,783 442.50 17,362,584 262.60
Options exercisable 326,259 225.80 4,451,704 194.00
1. Excludes options exercised but not allotted.
Summary of stock options outstanding as on March 31, 2007 is given below:
Range of exercise price
(Rupees per share) Number of share arising out of options
(Number of shares)
Weighted average
exercise price
(Rupees)
Weighted average
remaining contractual life
(Number of years)
105 - 300 .............................................. 203,190 168.24 4.50
301 - 600 .............................................. 12,861,093 442.93 8.27
601 - 1000 ............................................ 123,500 849.22 9.69
The options were exercised regularly throughout the year and weighted average share price as per NSE price volume data
during the year ended March 31, 2007 was Rs. 750.58 (March 31, 2006: Rs. 531.34).
12. Preference shares
Certain government securities amounting to Rs. 2,104.8 million (March 31, 2006: Rs. 2,001.1 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.
For these preference shares, the notification dated April 17, 2002 from Ministry of Finance, Government of India, issued on
the recommendation of Reserve Bank of India (RBI), under Section 53 of the Banking Regulation Act, 1949, had exempted
the Bank from the restriction of Section 12(1) of the Banking Regulation Act, 1949, which prohibits the issue of preference
shares by banks, for a period of five years. The Bank has applied to RBI for making a recommendation to Central Government
for continuation of such exemption.
13. Transfer to Investment Fluctuation Reserve (“IFR”)
An amount of Rs. 2,143.4 million being the excess balance in IFR account over the regulatory requirement was transferred
to general reserve account during the year ended March 31, 2005. RBI had 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 Investment Fluctuation Reserve account 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 had 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
account ‘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 account to
Revenue and other Reserves in the balance sheet during the year ended March 31, 2006.
14. Subordinated debt
a) During the year ended March 31, 2007, the Bank raised subordinated debt qualifying for Tier I/Tier II capital amounting
to Rs. 97,506.0 million. The details of these bonds are given below.
Rupees in million
Particulars Date of Issue Coupon Rate (%) Tenure Amount
Tranche 1 Option 1 January 15, 2007 9.98% (semi-annually)1Perpetual2180.0
Total (Tier I) 180.0
1. Coupon rate of 9.98% payable semi-annually from January 15, 2007 upto April 30, 2017 and 100 basis points over
and above the coupon rate of 9.98% i.e. 10.98% payable semi-annually for the balance years, if the call option is
not exercised by the Bank.
2. Call option exercisable on April 30, 2017 and on every interest payment date thereafter (exercisable with RBI
approval).
forming part of the Accounts (Contd.)
schedules