ICICI Bank 2009 Annual Report Download - page 91

F17
SCHEDULE 19
NOTES FORMING PART OF THE ACCOUNTS
The following additional disclosures have been made taking into account the requirements of accounting standards and Reserve
Bank of India (“RBI”) guidelines in this regard.
1. Capital adequacy ratio
The Bank is subject to the capital adequacy norms stipulated by the RBI guidelines on Basel II which became applicable with
effect from March 31, 2008. The guidelines require the Bank to maintain a minimum ratio of total capital to risk adjusted
assets of 9.0%, with a minimum Tier I capital ratio of 6.0%. Prior to March 31, 2008, the Bank was subject to the capital
adequacy norms as stipulated by the RBI guidelines on Basel I.
In view of its transitional arrangements to the Basel II framework, the RBI has prescribed a parallel run under which the
Bank has calculated capital adequacy under both Basel I and Basel II. Further at March 31, 2009, the Bank is required to
maintain capital adequacy based on the higher of the minimum capital required under Basel II or 90.0% of the minimum
capital required under Basel I (100% as at March 31, 2008). The computation under Basel II guidelines has resulted in a
higher minimum capital requirement as compared to Basel I and hence the capital adequacy as at March 31, 2008 and
March 31, 2009 has been maintained and reported by the Bank as per Basel II guidelines.
Rupees in million
As per Basel I framework As per Basel II framework
As on
March 31, 2009 As on March 31, 2008 As on March 31, 2009 As on March 31, 2008
Tier I capital .......................................................... 420,098.1 381,340.1 421,967.6 421,724.0
(of which Lower Tier I).......................................... 30,168.6 26,573.4 30,168.6 26,573.4
Tier II capital ......................................................... 129,715.9 121,212.1 131,585.3 78,861.0
(of which Upper Tier II) ......................................... 109,100.0 24,510.0 109,100.0 24,510.0
Total capital .......................................................... 549,814.0 502,552.2 553,552.9 500,585.0
Total risk weighted assets ................................... 3,453,378.9 3,367,547.0 3,564,629.9 3,584,566.2
CRAR (%) ............................................................. 15.92% 14.92% 15.53% 13.97%
CRAR – Tier I capital (%) ...................................... 12.16% 11.32% 11.84% 11.76%
CRAR – Tier II capital (%) ..................................... 3.76% 3.60% 3.69% 2.20%
Amount of subordinated debt raised as
Tier I capital/Tier II capital during the year ........... 45,210.0 22,350.0 45,210.0 22,350.0
2. Business/information ratios
The business/information ratios for the year ended March 31, 2009 and March 31, 2008 are given in the table below:
Year ended
March 31, 2009 Year ended March 31, 2008
(i) Interest income to working funds1 ................................................................. 8.11% 8.29%
(ii) Non-interest income to working funds1 ......................................................... 1.98% 2.37%
(iii) Operating profit to working funds1 ................................................................. 2.33% 2.14%
(iv) Return on assets2 ............................................................................................ 0.98% 1.12%
(v) Profit per employee (Rs. in million) ................................................................. 1.1 1.0
(vi) Business per employee (average deposits plus average advances)3
(Rs. in million) .................................................................................................. 115.4 100.8
1. For the purpose of computing the ratios, working funds represent the average of total assets as reported in Form X to RBI under
Section 27 of the Banking Regulation Act, 1949.
2. For the purpose of computing the ratio, assets represent average total assets as reported to RBI in Form X under Section 27 of the
Banking Regulation Act, 1949.
3. For the purpose of computing the ratio, deposits and advances are the total deposits and total advances as reported to RBI in Form
A under Section 42(2) of the Reserve Bank of India Act, 1934. The average deposits and the average advances represent the simple
average of the figures reported in Form A to RBI under Section 42(2) of the Reserve Bank of India Act, 1934.
forming part of the Accounts (Contd.)
schedules