ICICI Bank 2008 Annual Report Download - page 170

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F96
c. Amount of Tier-2 capital (March 31, 2008)
Rupees in billion
Tier-2 capital elements Amount
General provisions & loss reserves 15.69
Upper Tier-2 instruments 30.53
Lower Tier-2 capital instruments 104.10
Gross Tier-2 capital 150.32
Deductions :
Investments in paid-up equity of financial subsidiaries/associates 17.49
Securitisation exposure including credit enhancement 14.71
Other deductions 0.28
Net Tier-2 capital 117.85
d. Debt capital instruments eligible for inclusion in Tier-1 and Tier-2 capital
Rupees in billion
Tier-1 Upper Tier-2 Lower Tier-2
Total amount outstanding at March 31, 2008 26.57 30.53 131.47
Amount raised during current financial year 5.00 5.00 13.40
Amount eligible to be reckoned as capital funds 26.57 30.53 104.10
e. Total eligible capital (March 31, 2008)
Rupees in billion
Amount
Eligible Tier-1 capital 448.96
Eligible Tier-2 capital 117.85
Total eligible capital 566.81
3. CAPITAL ADEQUACY
a. Capital assessment
ICICI Bank is subjected to the capital adequacy guidelines stipulated by RBI which are based on the
framework of the Basel Committee on Banking Supervision. As per the capital adequacy guidelines
under Basel I, the Bank is required to maintain a minimum ratio of total capital to risk weighted assets
(CRAR) of 9.0%, at least half of which is required to be Tier-1 capital. In April 2007, RBI issued the final
guidelines on Basel II. As per Basel II guidelines, applicable from March 31, 2008, ICICI Bank is required
to maintain a minimum CRAR of 9.0%, with minimum Tier I capital ratio of 6%. ICICI Bank is required
to maintain capital at the level required by Basel I or Basel II, whichever is higher. The minimum
capital required to be maintained by ICICI Bank as per Basel II guidelines is higher than that under
Basel I guidelines. Assessment of the Bank’s capital requirements is carried out on a periodic basis.
b. Capital requirements for various risk areas (March 31, 2008)
Rupees in billion
Risk area Amount
Credit risk
Capital required
– Portfolio subject to standardized approach 311.96
– Securitisation exposure 1.89
BASEL II – Pillar 3 Disclosures (Consolidated)
1P-less_(Pillar).indd 961P-less_(Pillar).indd 96 6/20/08 4:52:32 PM6/20/08 4:52:32 PM