ICICI Bank 2009 Annual Report Download - page 41

39Annual Report 2008-2009
The Power of Belief
ICICI Prudential Asset Management Company
ICICI Prudential Asset Management Company (ICICI AMC) was the third largest asset management company in
India with average assets under management of Rs. 514.32 billion for March 2009. The mutual fund industry was
impacted by the tight liquidity conditions in October and November 2008 which led to a decrease in assets under
management of money market funds. ICICI Prudential AMC achieved a profit after tax of Rs. 7.1 million in fiscal
2009 compared to Rs. 0.82 billion in fiscal 2008.
ICICI Venture Funds Management Company Limited
ICICI Venture Funds Management Company Limited (ICICI Venture) maintained its leadership position in private
equity in India, with funds under management of about Rs. 97.87 billion at year-end fiscal 2009. ICICI Venture
achieved a profit after tax of Rs. 1.48 billion in fiscal 2009 compared to Rs. 0.90 billion in fiscal 2008.
ICICI Securities Limited and ICICI Securities Primary Dealership Limited
The brokerage industry saw a slowdown in revenues in fiscal 2009 as the market turnover decreased sharply
from its peak levels. ICICI Securities achieved a profit after tax of Rs. 44.2 million in fiscal 2009 compared to
Rs. 1.51 billion in fiscal 2008. ICICI Securities Primary Dealership’s profit after tax increased from Rs. 1.40 billion
in fiscal 2008 to Rs. 2.72 billion in fiscal 2009 due to higher profits from fixed income portfolio consequent to the
sharp decrease in yields on government securities in the third quarter of fiscal 2009.
ICICI Bank UK PLC
ICICI Bank UK PLC (ICICI Bank UK) is a full-service bank offering retail and corporate and investment banking
services in the UK and Europe. During fiscal 2009, ICICI Bank UK focused on rebalancing its deposit base towards
retail term deposits. The Bank saw an increase of about US$ 1.80 billion in retail term deposits during fiscal
2009 due to which the proportion of retail term deposits in total deposits increased from 16% at March 31, 2008
to 58% at March 31, 2009. ICICI Bank UK’s customer base increased from about 210,000 at March 31, 2008 to
over 310,000 customers at March 31, 2009. After accounting for the gains on buyback of bonds and mark-to-
market and impairment provisions on the investment portfolio, ICICI Bank UK’s profit after tax for fiscal 2009 was
US$ 6.8 million. ICICI Bank UK’s capital position continued to be strong with a capital adequacy ratio of 18.4% at
March 31, 2009.
ICICI Bank Canada
ICICI Bank Canada is a full-service bank which offers a wide range of financial solutions to cater to personal,
commercial, corporate, investment, treasury and trade requirements. ICICI Bank Canada saw an increase of about
CAD 1.75 billion in term deposits during fiscal 2009 while its customer accounts increased from about 200,000
at March 31, 2008 to over 280,000 at March 31, 2009. ICICI Bank Canada’s profit after tax for fiscal 2009 was
CAD 33.9 million. At March 31, 2009, ICICI Bank Canada had total advances of CAD 5.07 billion and total assets
of CAD 6.43 billion. ICICI Bank Canada’s capital position continued to be strong with a capital adequacy ratio of
19.9% at March 31, 2009.
KEY RISKS
We have included statements in this annual report which contain words or phrases such as ‘will’, ‘expected to’,
etc., and similar expressions or variations of such expressions, may constitute ‘forward-looking statements’.
These forward-looking statements involve a number of risks, uncertainties and other factors that could cause
actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for banking
and other financial products and services in the countries that we operate or where a material number of our
customers reside, our ability to successfully implement our strategy, including our use of the Internet and other
technology, our rural expansion, our exploration of merger and acquisition opportunities both in and outside
of India, our ability to integrate recent or future mergers or acquisitions into our operations and manage the
risks associated with such acquisitions to achieve our strategic and financial objectives, our ability to manage
the increased complexity of the risks we face following our rapid international growth, future levels of impaired
loans, our growth and expansion in domestic and overseas markets, the adequacy of our allowance for credit
and investment losses, technological changes, investment income, our ability to market new products, cash flow
projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or
become a party to, the future impact of new accounting standards, our ability to implement our dividend policy,
the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on
us, the state of the global financial system and other systemic risks, the bond and loan market conditions and
availability of liquidity amongst the investor community in these markets, the nature of credit spreads and interest