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th
16 Annual Report and Accounts 2009-2010

Table of contents

  • Page 1
    16th Annual Report and Accounts 2009-2010

  • Page 2
    ... deepening our relationship with our customers, we have undertaken many initiatives to strengthen the customer experience through multiple touchpoints such as bank branches, internet banking, mobile banking and phone banking. In addition we have continued to offer products and services that have...

  • Page 3
    ...' Report Auditors' Certificate on Corporate Governance Business Overview Promoting Inclusive Growth Management's Discussion and Analysis Key Financial Indicators Particulars of Employees under Section 217 (2A) of the Companies Act, 1956 FINANCIALS Auditors' Report Balance Sheet Profit & Loss Account...

  • Page 4
    ...stability and significant restoration of confidence in global markets. This transition was facilitated by policy initiatives both in the form of unprecedented monetary policy action and strong fiscal support. executive compensation. Over the past year, a lot of work has been done in these areas and...

  • Page 5
    ... conglomerates and oversight on executive compensation are already a part of the Indian financial system. Within this strong systemic regulatory architecture, ICICI Bank, with one of the highest capital adequacy ratios among large Indian banks and strong liquidity and risk management, is well placed...

  • Page 6
    ... Cs strategy of current & savings account (CASA) deposit growth, cost control, credit quality improvement and capital conservation to position ourselves for the next phase of growth. It is with pleasure that I inform you of considerable success in the execution of this strategy. Our CASA ratio has...

  • Page 7
    ... network will be a core element of our strategy for service delivery to our customers. At the same time, we are continuously enhancing our non-branch channels, including internet banking and mobile banking, to give our customers the power to use technology for safe and convenient banking. The ICICI...

  • Page 8
    ... Share Transfer & Shareholders/ Investors' Grievance Committee M. K. Sharma, Chairman Homi R. Khusrokhan N. S. Kannan Committee of Executive Directors Chanda D. Kochhar, Chairperson Sandeep Bakhshi N. S. Kannan K. Ramkumar Senior Management Pravir Vohra Group Chief Technology Officer Sandeep...

  • Page 9
    ... carried forward to the next year 1. Includes dividend for the prior year paid on shares issued after the balance sheet date and prior to the record date. 2. After taking into account transfer to Reserve Fund Rs. 2.2 million for fiscal 2010, making in all Rs. 10.9 million. Annual Report 2009-2010...

  • Page 10
    ...that this was all done in just about 12 hours. I am an admirer of ICICI Bank for your liberal attitude, transparent transactions, up-to-date technology, customer friendly automation, professionalism with a human touch, etc. The list goes on and on and this response to my request has made me indebted...

  • Page 11
    ... Primary Dealership Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Trusteeship Services Limited ICICI Prudential Pension Funds Management Company Limited1 1. Subsidiary of ICICI Prudential Life Insurance...

  • Page 12
    ... Officer ICICI Wealth Management Inc., a subsidiary of ICICI Bank Canada, has been dissolved effective December 31, 2009. As approved by the Central Government vide letter dated April 9, 2010 under Section 212(8) of the Companies Act, 1956, copies of the balance sheet, profit & loss account, report...

  • Page 13
    ... my relationship with ICICI Bank last year when I opened my salary account. It is almost 1 year now and I would like to say that this Bank really rocks! I'm extremely happy and satisfied with all their services - right from their timely e-mails, which they send regarding my monthly transactions...

  • Page 14
    .... I hold a savings, demat and a credit card account with ICICI Bank. The assistance that I get on all these products by ICICI Bank Customer Care is really worth appreciating. I can say that the Internet Banking facility and the Customer Care Service of ICICI Bank are undoubtedly the best. I can...

  • Page 15
    ... to build a culture of service orientation, which will be the platform for our future growth. We are confident that our employees will make ICICI Bank the service icon in the financial service domain." - K. Ramkumar Executive Director AUDITORS The auditors, B S R & Co., Chartered Accountants, will...

  • Page 16
    ...Liability Management Committee is responsible for managing the balance sheet and reviewing asset-liability position of the Bank. • • Policies approved from time to time by the Board of Directors/Committees of the Board form the governing framework for each type of risk. The business activities...

  • Page 17
    ... Customer Service Officer of the RLG - Branch Operations in discharging his duties. His courteous behavior and friendly attitude has helped me a lot during my transactions with your bank. I was having problems regarding the activation of my demat account. Fortunately, I met this officer at this time...

  • Page 18
    .../CFO Certification In terms of Clause 49 of the Listing Agreement, the certification by the Managing Director & CEO and Executive Director & Chief Financial Officer on the financial statements and internal controls relating to financial reporting has been obtained. Board of Directors ICICI Bank has...

  • Page 19
    ... their remuneration, approval of payment to statutory auditors for other permitted services rendered by them, review of functioning of Whistle Blower Policy, review of the quarterly and annual financial statements before submission to the Board, review of the adequacy of internal control systems and...

  • Page 20
    ... guidelines for the Employees Stock Option Scheme and recommendation of grant of ICICI Bank stock options to the employees and wholetime Directors of ICICI Bank and its subsidiary companies. Composition The Board Governance, Remuneration & Nomination Committee currently comprises four non-executive...

  • Page 21
    ...from time to time within the limits prescribed by the Companies Act, 1956 or the Central Government. The Board of Directors has approved the payment of Rs. 20,000 as sitting fees for each Meeting of Board or Committee attended. This amount is within the limits prescribed by the Ministry of Corporate...

  • Page 22
    ...RBI and the Central Government have vide their letters dated March 12, 2009 and January 8, 2010 respectively approved the payment of above remuneration. Information on the total sitting fees paid to each non-wholetime Director during fiscal 2010 for attending Meetings of the Board and its Committees...

  • Page 23
    ... Committee include review of developments in key industrial sectors and approval of credit proposals as per authorisation approved by the Board. Composition The Credit Committee currently comprises five Directors including four non-executive Directors and the Managing Director & CEO. The Committee...

  • Page 24
    ..., if any, and reporting to top management of the Bank and RBI, monitor progress of investigation, and recovery position, ensure that staff accountability is examined at all levels in all the cases of frauds and action, if required, is completed quickly without loss of time and review of efficacy of...

  • Page 25
    ...and operation of bank accounts for payment of interest, dividend and redemption of securities and the listing of securities on stock exchanges. Composition The Share Transfer & Shareholders'/Investors' Grievance Committee is chaired by M. K. Sharma. The Committee currently comprises three Directors...

  • Page 26
    ... Sandeep Batra, Senior General Manger is the Group Compliance Officer & Company Secretary. 54 shareholder complaints received in fiscal 2010 were processed. At March 31, 2010, 4 complaints were pending which have been subsequently resolved. X. Committee of Executive Directors Terms of reference The...

  • Page 27
    ... from time to time. As required by SEBI and the listing agreements, ICICI Bank files its financial and other information on the Corporate Filing and Dissemination System. ICICI Bank's quarterly financial results are published either in the Financial Express (Mumbai, Pune, Ahmedabad, Delhi, Lucknow...

  • Page 28
    ... annual listing fees have been paid to NYSE where ADSs of the Bank are listed. Market Price Information The reported high and low closing prices and volume of equity shares of ICICI Bank traded during fiscal 2010 on BSE and NSE are set out in the following table: Month April 2009 May 2009 June 2009...

  • Page 29
    ... Index ICICI Bank Share Transfer System ICICI Bank's investor services are handled by 3i Infotech Limited (3i Infotech). 3i Infotech is a SEBI registered Category I - Registrar to an Issue & Share Transfer (R&T) Agent. 3i Infotech is a global information technology company providing technology...

  • Page 30
    ... form with the total issued/paid up equity capital of ICICI Bank. Certificates issued in this regard are placed before the Share Transfer & Shareholders'/Investors' Grievance Committee and forwarded to BSE and NSE, where the equity shares of ICICI Bank are listed. Physical Share Disposal Scheme...

  • Page 31
    ... and Investment Limited Government of Singapore Dodge and Cox International Stock Fund Aberdeen Asset Managers Limited A/C Aberdeen International India Opportunities Fund (Mauritius) Limited Bajaj Allianz Life Insurance Company Limited The New India Assurance Company Limited Total No. of shares 315...

  • Page 32
    ... Bank's total equity capital at March 31, 2010. Currently, there are no convertible debentures outstanding. Plant Locations - Not applicable Address for Correspondence Sandeep Batra Group Compliance Officer & Company Secretary or Ranganath Athreya General Manager & Joint Company Secretary & Head...

  • Page 33
    ... 2010 approved a grant of approximately 2.49 million options for fiscal 2010 to eligible employees and wholetime Directors. Each option confers on the employee a right to apply for one equity share of face value of Rs. 10 of ICICI Bank at Rs. 977.70, which was the closing price on the stock exchange...

  • Page 34
    ... co-operation, support and guidance. ICICI Bank wishes to thank its investors, the domestic and international banking community, rating agencies and stock exchanges for their support. ICICI Bank would like to take this opportunity to express sincere thanks to its valued clients and customers for...

  • Page 35
    ...'s Certificate on Corporate Governance To the Members of ICICI Bank Limited We have examined the compliance of conditions of corporate governance by ICICI Bank Limited ("the Bank") for the year ended on 31 March 2010, as stipulated in Clause 49 of the Listing Agreement of the said Company with...

  • Page 36
    ... of volatile global markets on capital flows will be key factors impacting the economy and financial markets. FINANCIAL SECTOR OVERVIEW During fiscal 2010, the year-on-year growth in non-food bank credit declined from 17.8% in March 2009 to 16.9% in March 2010. Based on data published by RBI, for...

  • Page 37
    ... banking. Wholesale Banking Group, comprising the Corporate Banking Group, Commercial Banking Group, Investment Banking Group, Project Finance Group, Financial Institutions and Capital Markets Group, Government Banking Group and Mid-corporate & Small Enterprises Group. z Annual Report 2009-2010...

  • Page 38
    ... Indians, international trade finance, correspondent banking and wholesale resource mobilisation. Global Markets Group, comprising our global client-centric treasury operations. Corporate Centre, comprising financial reporting, planning and strategy, asset liability management, investor relations...

  • Page 39
    ..., for structuring and execution of investment banking mandates. We have a Commercial Banking Group within the Wholesale Banking Group for growing this business through identified branches, while working closely with the corporate relationship teams. Our strategy for growth in commercial banking, or...

  • Page 40
    ...to support our corporate and investment banking business, and to expand private banking operations for India-centric asset classes. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre...

  • Page 41
    .... Our Asset Liability Management Committee is responsible for managing the balance sheet and reviewing our asset-liability position. Policies approved from time to time by the Board of Directors/Committees of the Board form the governing framework for each type of risk. The business activities are...

  • Page 42
    ...various retail business units. Our credit officers evaluate retail credit proposals on the basis of the product policy approved by the Committee of Executive Directors and the risk assessment criteria defined by the Global Credit Risk Management Group. These criteria vary across product segments but...

  • Page 43
    ... Board of Directors and Know Your Customer and transaction monitoring procedures as per RBI guidelines. The Bank reviews these policies and procedures from time to time. TREASURY Our treasury operations are structured along the balance sheet management function, the client-related corporate markets...

  • Page 44
    ... customer centric technology initiatives including customer account number portability across branches and electronic fund transfer for global customers for remittances to non-ICICI beneficiaries in India. We also implemented new modules in our private banking system to manage the customer life...

  • Page 45
    ... losses for ICICI Life since the company's inception till fiscal 2009. If properly priced, life insurance policies are profitable over the life of the policy, but at the time of sale, there is a loss on account of non-amortised expenses and commissions, generally termed as new business strain...

  • Page 46
    ...to credit, market and liquidity risks. CREDIT RATINGS ICICI Bank's credit ratings by various credit rating agencies at March 31, 2010 are given below: Agency Moody's Investor Service (Moody's) Standard & Poor's (S&P) Credit Analysis & Research Limited (CARE) Investment Information and Credit Rating...

  • Page 47
    ..."Best Trade Finance Bank" (India) and "Best Foreign Exchange Bank" (India) by Finance Asia "House of the Year" by Asia Risk magazine "Best Domestic Bank" (India) and "Best Derivative House" (India) by Asset Triple A "Best Super-Affluent Bank" (India), "Best Fixed Income Portfolio Management", "Best...

  • Page 48
    ... that work towards empowering the poor to participate in and benefit from the Indian growth process. Since its inception, ICICI Foundation has taken forward the ICICI Group's existing initiatives in the areas of primary health, elementary education and access to finance and supported new initiatives...

  • Page 49
    ... of Indian states, which policymakers are using as a diagnostic tool for planning better environmental policies. In addition, ICICI Foundation works with ICICI Bank and its subsidiaries in the formulation and execution of their social responsibility activities. d) Annual Report 2009-2010 47

  • Page 50
    ...which allows them to donate a part of their salary every month to a cause of their choice. iv. Employee volunteering Given that there are a number of civil society organisations that could benefit from the skills of ICICI Bank's employees, the Bank has been working with iVolunteer (www.ivolunteer.in...

  • Page 51
    ... achieved through different channels and technologies. Financial Innovation & Network Operations (FINO), a company sponsored by the ICICI Group, is working with a number of players in the financial sector for customer acquisition and servicing using the smart card model. Total enrolments of FINO...

  • Page 52
    ... by encouraging paperless transactions and communication, using CFL lighting and regulating AC temperatures across all our offices and branches. Green products and services: ICICI Bank offers discounts in processing fees for customers opting for energy-efficient vehicles. Processing fees are reduced...

  • Page 53
    ... retail term deposits, capitalising on opportunities in select asset segments including home loans, other secured retail loans, project finance and commercial banking activities, maintaining cost efficiency even as absolute level of expenses is expected to increase in line with business growth and...

  • Page 54
    ... 2009. Total assets decreased by 4.2% from Rs. 3,793.01 billion at year-end fiscal 2009 to Rs. 3,634.00 billion at yearend fiscal 2010, primarily due to a decrease in advances by Rs. 371.05 billion, offset, in part, by an increase in investments by Rs. 178.35 billion. Operating results data The...

  • Page 55
    ...after tax to the quarterly average equity and reserves. 2. Return on average assets is the ratio of net profit after tax to average assets. The average balances are the averages of daily balances, except averages of foreign branches which are calculated on monthly basis. 3. Cost represents operating...

  • Page 56
    ... in total deposits increased from 28.7% at year-end fiscal 2009 to 41.7% at year-end fiscal 2010. The proportion of average current and savings account deposits in total average deposits increased from 26.6% in fiscal 2009 to 32.5% in fiscal 2010. Borrowings increased primarily due to new capital...

  • Page 57
    ...dividend from subsidiaries and profit/loss on sale of fixed and other assets. During fiscal 2010, the Bank and First Data, a global leader in electronic commerce and payment services, formed a merchant acquiring alliance and a new entity, 81% owned by First Data, was formed, which has acquired ICICI...

  • Page 58
    ...addition of new branches. The number of branches and extension counters in India increased from 1,419 at year-end fiscal 2009 to 1,707 at year-end fiscal 2010. The number of ATMs increased from 4,713 at year-end fiscal 2009 to 5,219 at year-end fiscal 2010. Depreciation on leased assets decreased by...

  • Page 59
    ..., bonds and other investments 396.71 Fixed assets (including leased assets) 38.02 Other assets 241.64 Total Assets Rs. 3,793.01 Liabilities: Equity capital and reserves Rs. 495.33 - Equity capital 11.13 - Reserves 484.20 Deposits 2,183.48 - Savings deposits 410.36 - Current deposits 216.32 - Term...

  • Page 60
    .... Rs. in billion, except percentages March 31, 2009 Claims against the Bank not acknowledged as debts Liability for partly paid investments Notional principal amount of outstanding forward exchange contracts Guarantees given on behalf of constituents Acceptances, endorsements and other obligations...

  • Page 61
    ...-related obligations. As a part of our project financing and commercial banking activities, we have issued guarantees to enhance the credit standing of our customers. These generally represent irrevocable assurances that we will make payments in the event that the customer fails to fulfill its...

  • Page 62
    ...year-end fiscal 2010. Our Global Credit Risk Management Group monitors all major sectors of the economy and specifically tracks sectors in which we have loans outstanding. We seek to respond to any economic weakness in an industrial segment by restricting new exposures to that segment and any growth...

  • Page 63
    ... 1.6 100.0% Home loans1 Automobile loans Commercial business Two-wheeler loans Personal loans Credit cards Loans against securities and others2 Total retail finance portfolio 1. Includes developer financing of Rs. 24.14 billion and Rs. 32.76 billion at year-end fiscal 2009 and year-end fiscal 2010...

  • Page 64
    ... Small Industries Development Bank of India and the National Housing Bank. These deposits have a maturity of up to seven years and carry interest rates lower than market rates. At year-end fiscal 2010, our total investments in such bonds were Rs. 101.10 billion. As per RBI guidelines, banks are also...

  • Page 65
    ..., if the account remains overdue for more than 90 days. In compliance with regulations governing the presentation of financial information by banks, we report non-performing assets net of cumulative write-offs in our financial statements. RBI has separate guidelines for restructured loans. A fully...

  • Page 66
    ...Rs. 98.03 1. Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans and credit cards. Also, includes NPAs in dealer funding and developer finance portfolios of Rs. 0.42 billion at March 31, 2010 and Rs. 0.44 billion at March 31, 2009. 2. Other industries...

  • Page 67
    ...bonds. Profit after tax of ICICI Bank Canada increased from Rs. 1.39 billion in fiscal 2009 to Rs. 1.54 billion in fiscal 2010 primarily due to increased realisation of gains on sale of insured mortgages and mark-to-market gains on investments, as well as reduced provisions on loans, offset, in part...

  • Page 68
    ... 2010 compared to loss of Rs. 7.80 billion in fiscal 2009 due to an increase in net premium earned, fund management fees, risk charges, policy fees and other charges and due to lower operating and commission expenses. Profit after tax of ICICI Lombard General Insurance Company Limited increased...

  • Page 69
    ... Indian GAAP and also report a reconciliation of shareholders' equity and net profit under Indian GAAP to US GAAP. We are in the process of migrating our consolidated financial statements to the IFRS converged Indian Accounting Standards as per the roadmap announced by MCA. Annual Report 2009-2010...

  • Page 70
    ... 1. Includes merchant foreign exchange income and margin on customer derivative transactions. Rs. in billion At year-end fiscal 2003 Advances Deposits Total assets Equity capital & reserves Total capital adequacy ratio 532.79 481.69 2004 626.48 681.09 2005 2006 2007 2008 2009 2010 914.05 1,461.63...

  • Page 71
    ...India Head - HR, ICICI Lombard General Insurance Co. Limited Head of Fixed Income Fund, SBI Mutual Fund Head of Micro Finance, Barclays Bank Plc Assistant Manager, Bharti Airtel Country Head, Apna Loan (I) Private Limited Head, Rawbank Project Officer, IFCI Limited Managing Director, Sonnet Strategy...

  • Page 72
    ...TADFL Sales Manager, ICICI Prudential Life Insurance Company Limited - Chief Financial Officer, Kenal Kiran Clothing Limited - Vice-President, ABN Amro Bank Credit Officer, SBI Commercial & International Bank Limited Branch Manager, HDFC Bank Manager - Agency Sales, Met Life Insurance Manager, SIDBI...

  • Page 73
    ...Finance Principal Banking, Infosys Technologies Head Agency Business, DGP Windsor Market Space Manager, Castrol India Private Limited Director, American Express Manager Supply Chain, Becton Dickinson India Limited Advisor to Chairman, Bakrie Group, Indonesia Executive Director, ICICI Prudential Life...

  • Page 74
    ... Branch Head, Reliance Life Insurance Business Manager, SRF Fin. /GE Capital TFS Junior Officer, Price Waterhouse Sales Executive - Jaiprakash Enterprises Assistant Manager, Oriental Bank of Commerce - Vice-President, Oyster Solutions Assistant Vice-President, IDBI Bank Limited Marketing & Strategy...

  • Page 75
    ... Head Sales, ICICI Prudential Life Insurance Company Limited - Senior HR Manager, Convergys India Wealth Advisor, Citi Group Assistant Vice-president, ICICI Securities Inc. Finance Manager, Must Garments Corporation Senior Manager, Union Bank of India Manager-Forex, Banque Nationale De Paris Officer...

  • Page 76
    ... Key Accounts Manager, Procter & Gamble Director, Monarch Marketing Product Manager, Godrej GE Appliances Group Manager, Birla Global Finanance Limited - Assistant General Manager, State Bank of India Product Manager, Standard Chartered Bank Head Accounts, Standard Chartered Bank - Deputy Manager...

  • Page 77
    ...1-May-00 Senior Manager, Max New York Life Insurance Company Deputy Manager, UTI Bank Executive Corporate Planing- India Satcom Assistant Vice-President, GE Countrywide Consumer Finance - Assistant Manager Projects, Ajcon Capital Markets Limited Officer MII, State Bank of India Senior Assistant Vice...

  • Page 78
    ...India Asset Reconstruction Company (India) Limited Marketing Executive - Transnet India Private Limited Manager- Mortgages, Citifinancial Consumer Finance India Limited Assistant Manager, HDFC Bank Limited Manager, HDFC Standard Life Insurance KPMG LLP Assistant Manager, TVS Group Assistant Director...

  • Page 79
    ..., other employees are in the permanent employment of the Bank, governed by its rules and conditions of service. Designation/Nature of duties - Abbreviations Chairman Executive Director and CFO Senior General Manager & Deputy Chief Financial Officer General Manager - Joint Company Secretary & Head...

  • Page 80
    financials

  • Page 81
    ... banking companies and give a true and fair view in conformity with accounting principles generally accepted in India: a) in the case of the Balance Sheet, of the state of affairs of the Bank as at 31 March 2010; b) in the case of the Profit and Loss Account, of the profit of the Bank for the year...

  • Page 82
    ... D. KOCHHAR Managing Director & CEO SANDEEP BAKHSHI Deputy Managing Director N. S. KANNAN Executive Director & CFO K. RAMKUMAR Executive Director SONJOY CHATTERJEE Executive Director Place : Mumbai Date : April 24, 2010 F2 SANDEEP BATRA Group Compliance Officer & Company Secretary RAKESH JHA...

  • Page 83
    ... forward ...TOTAL PROFIT/(LOSS)...IV. APPROPRIATIONS/TRANSFERS Transfer to Statutory Reserve ...Transfer to Reserve Fund...Transfer to Capital Reserve ...Transfer to Investment Reserve Account ...Transfer to General Reserve ...Transfer to Special Reserve ...Dividend (including corporate dividend tax...

  • Page 84
    ... form an integral part of the Balance Sheet. As per our Report of even date. For B S R & Co. Chartered Accountants Firm's Registration No.: 101248W AKEEL MASTER Partner Membership No.: 046768 Place : Mumbai Date : April 24, 2010 F4 K. V. KAMATH Chairman For and on behalf of the Board of Directors...

  • Page 85
    schedules forming part of the Balance Sheet At 31.03.2010 SCHEDULE 1 - CAPITAL Authorised capital 1,275,000,000 equity shares of Rs. 10 each (March 31, 2009: 1,275,000,000 equity shares of Rs. 10 each)...15,000,000 shares of Rs. 100 each (March 31, 2009: 15,000,000 shares of Rs.100 each)1 ...350 ...

  • Page 86
    ... and other reserves Opening balance ...Additions during the year ...Deductions during the year...Closing balance ...IX. Balance in profit and loss account... TOTAL RESERVES AND SURPLUS ...1. 2. Rs. 568.3 million (March 31, 2009: Rs. 184.1 million) on exercise of employee stock options. Represents...

  • Page 87
    ... part of the Balance Sheet (Contd.) At 31.03.2010 SCHEDULE 3 - DEPOSITS A. I. Demand deposits i) From banks...ii) From others ...II. Savings bank deposits ...III. Term deposits i) From banks...ii) From others ...TOTAL DEPOSITS ...I. Deposits of branches in India ...II. Deposits of branches outside...

  • Page 88
    ...146,806,285 175,363,342 TOTAL CASH AND BALANCES WITH RESERVE BANK OF INDIA ... SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I. In India i) Balances with banks a) b) ii) a) b) In current accounts ...In other deposit accounts ...With banks ...With other institutions...9,595,803...

  • Page 89
    ... ...ii) Cash credits, overdrafts and loans repayable on demand ...iii) Term loans...iv) Securitisation, finance lease and hire purchase receivables ...TOTAL ADVANCES ...B. i) Secured by tangible assets (includes advances against book debts) ...ii) Covered by bank/government guarantees...iii...

  • Page 90
    ... are in the process of being transferred in the Bank's name. SCHEDULE 12 - CONTINGENT LIABILITIES I. Claims against the Bank not acknowledged as debts...II. Liability for partly paid investments ...III. Liability on account of outstanding forward exchange contracts ...IV. Guarantees given on behalf...

  • Page 91
    schedules forming part of the Profit and Loss Account Year ended 31.03.2010 SCHEDULE 13 - INTEREST EARNED I. Interest/discount on advances/bills ...II. Income on investments1 ...III. Interest on balances with Reserve Bank of India and other inter-bank funds IV. Others2, 3 ...TOTAL INTEREST EARNED ...

  • Page 92
    ... forming part of the Accounts (Contd.) SCHEDULE 18 Significant accounting policies OVERVIEW ICICI Bank Limited (ICICI Bank or the Bank), incorporated in Vadodara, India is a publicly held banking company engaged in providing a wide range of banking and financial services including commercial banking...

  • Page 93
    ... Sale', is amortised over the remaining period to maturity on constant yield basis. Quoted investments are valued based on the trades/quotes on the recognised stock exchanges, subsidiary general ledger account transactions, price list of RBI or prices declared by Primary Dealers Association of India...

  • Page 94
    ...at quarterly average closing rates. Monetary foreign currency assets and liabilities of domestic and integral foreign operations are translated at closing exchange rates notified by Foreign Exchange Dealers' Association of India (FEDAI) at the balance sheet date and the resulting profits/ losses are...

  • Page 95
    ... Life Insurance Company Limited are administering separate funds. Employees had the option to retain the existing balance with Life Insurance Corporation of India or seek a transfer to ICICI Prudential Life Insurance Company Limited. Pension The Bank provides for pension, a deferred retirement plan...

  • Page 96
    ... number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive. 14. Lease transactions Lease payments for assets taken on operating lease are recognised as an expense in the profit and loss account over the lease term. 15. Cash...

  • Page 97
    ...on assets2 ...Profit per employee (Rs. in million) ...Business per employee (average deposits plus average advances)3 (Rs. in million) ... 7.19% 2.09% 2.72% 1.13% 1.2 102.9 For the purpose of computing the ratio, working funds represent the average of total assets as reported in Form X to RBI under...

  • Page 98
    ...) and deferred tax asset (net). Includes share capital and reserves and surplus. Rupees in million For the year ended March 31, 2009 Particulars 1. 2. 3. 4. F18 Revenue ...Less: Inter-segment revenue ...Total revenue (1) - (2) ...Segment results ...Retail Banking 230,152.1 Wholesale Banking 248,077...

  • Page 99
    ... (net) and deferred tax asset (net). Includes share capital and reserves and surplus. Geographical segments The Bank reports its operations under the following geographical segments. z Domestic operations comprise branches in India. z Foreign operations comprise branches outside India and offshore...

  • Page 100
    ... pattern of assets and liabilities of the Bank at March 31, 2009. Rupees in million Maturity buckets 1 to 14 days ...15 to 28 days ...29 days to 3 months ...3 to 6 months ...6 months to 1 year ...1 to 3 years...3 to 5 years...Above 5 years...Total ...1. 2. Loans & Investment Advances1 securities1...

  • Page 101
    ... Information Network and Operations Limited, TCW/ICICI Investment Partners LLC, TSI Ventures (India) Private Limited (upto June 30, 2008), I-Process Services (India) Private Limited, I-Solutions Providers (India) Private Limited, NIIT Institute of Finance, Banking and Insurance Training Limited...

  • Page 102
    ... Nil). The material transactions for the year ended March 31, 2010 were with ICICI Merchant Services Private Limited amounting to Rs. 755.8 million, ICICI Prudential Life Insurance Company Limited amounting to Rs. 32.1 million (March 31, 2009: Rs. 8,081.6 million), ICICI Bank UK PLC amounting to Nil...

  • Page 103
    ... The material transactions were with ICICI Bank Canada amounting to Rs. 11.7 million (March 31, 2009: Nil) and ICICI Home Finance Company Limited amounting to Nil (March 31, 2009: Rs. 60.8 million). Brokerage and fee expenses During the year ended March 31, 2010, the Bank paid brokerage/fees to its...

  • Page 104
    ... Inclusive Growth amounting to Rs. 153.0 million (March 31, 2009: Rs. 300.0 million). Transfer of merchant acquiring operations During the year ended March 31, 2010, the Bank and First Data, a company engaged in electronic commerce and payment services, formed a merchant acquiring alliance and a new...

  • Page 105
    ... with ICICI Bank ...Deposits by ICICI Bank ...Call/term money lent ...Call/term money borrowed ...Advances ...Investments by ICICI Bank ...Investments by related parties in ICICI Bank ...Receivables ...Payables ...Guarantees/lines of credit ...Swaps/forward contracts (notional amount) ...Employee...

  • Page 106
    ... with ICICI Bank ...Deposits by ICICI Bank ...Call/term money lent ...Call/term money borrowed ...Advances ...Investments by ICICI Bank ...Investments by related parties in ICICI Bank ...Receivables ...Payables ...Guarantees/lines of credit ...Swaps/forward contracts (notional amount) ...Employee...

  • Page 107
    ...closing balance of the present value of the defined benefit obligation for pension benefits. Rupees in million Particulars Opening obligations ...Service cost ...Interest cost ...Actuarial (gain)/loss ...Liabilities extinguished on settlement ...Benefits paid ...Obligations at end of year ...Opening...

  • Page 108
    schedules forming part of the Accounts (Contd.) Particulars Cost for the year Service cost ...Interest cost ...Expected return on plan assets ...Actuarial (gain)/loss ...Curtailments & settlements (gain)/loss ...Effect of the limit in para 59(b) ...Net cost ...Investment details of plan assets ...

  • Page 109
    schedules forming part of the Accounts (Contd.) Particulars Opening plan assets, at fair value ...Expected return on plan assets ...Actuarial gain/(loss) ...Contributions ...Assets acquired on acquisition/(distributed on divestiture) ...Benefits paid ...Closing plan assets, at fair value...Fair ...

  • Page 110
    schedules forming part of the Accounts (Contd.) 9. Employee Stock Option Scheme (ESOS) 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 ...

  • Page 111
    ...value of investments a) In India ...b) Outside India ...Movement of provisions held towards depreciation on investments Opening balance ...Add: Provisions made during the year ...Less: Write-off/write back of excess provisions during the year ...Closing balance ...At March 31, 2010 At March 31, 2009...

  • Page 112
    ... bonds of subsidiaries, namely ICICI Bank UK PLC and ICICI Bank Canada. This also excludes investments in non-Indian government securities of Rs. 1,645.0 million made by overseas branches. Excludes equity shares, units of equity-oriented mutual fund and units of venture capital fund. Excludes...

  • Page 113
    ... account, was transferred to profit and loss account during the year ended March 31, 2010. 16. CBLO transactions Collateralised Borrowing and Lending Obligation (CBLO) is a discounted money market instrument, developed by The Clearing Corporation of India Limited (CCIL) and approved by RBI which...

  • Page 114
    ..., corporate loans for development of special economic zone, loans to borrowers where servicing of loans is from a real estate activity and exposures to mutual funds/venture capital funds/private equity funds investing primarily in the real estate companies. Excludes non-banking assets acquired...

  • Page 115
    ... and ICICI Prudential Flexible Income Plan: 5.4%. The excess exposure in the above cases were duly approved/confirmed by the Board of Directors of the Bank with exposures being within 20.0% of Bank's capital funds in accordance with the guidelines issued by RBI. 19. Risk category-wise country-wise...

  • Page 116
    ... value of the intangible collaterals was Nil. 22. Financial assets transferred during the year to securitisation company (SC)/reconstruction company (RC) The Bank has transferred certain assets to Asset Reconstruction Companies (ARCs) in terms of the guidelines issued by RBI governing such transfer...

  • Page 117
    ... of the credit/debit card reward points. 26. Description of contingent liabilities The following table sets forth description of contingent liabilities. Sr. Contingent liability no. 1. Claims against the Bank not acknowledged as debts Liability for partly paid investments Liability on account of...

  • Page 118
    ... of business. The Bank offers these products to its customers to enable them to transfer, modify or reduce their foreign exchange and interest rate risks. The Bank also undertakes these contracts to manage its own interest rate and foreign exchange positions. With respect to the transactions entered...

  • Page 119
    ... of Rs. 303.1 million during the year ended March 31, 2010 on account of conversion of derivative receivables into term loan/preference shares. Includes eight borrowal accounts restructured for a second time with asset classification benefit upto June 30, 2009, amounting to Rs. 24,280.8 million...

  • Page 120
    schedules forming part of the Accounts (Contd.) 30. Assets given on lease Assets under finance lease The following table sets forth, for the periods indicated, the details of finance leases. Rupees in million Particulars Future minimum lease receipts ...Present value of lease receipts ...Unmatured ...

  • Page 121
    ..., accounting, risk monitoring and reporting and ensures compliance with various internal and regulatory guidelines. The market making and the proprietary trading activities in derivatives are governed by the investment policy of the Bank, which lays down the position limits, stop loss limits as...

  • Page 122
    ...Bank offers deposit products to customers of its offshore branches with structured returns linked to interest, forex, credit or equity benchmarks. The Bank covers these exposures in the inter-bank market. At March 31, 2010, the net open position on this portfolio was Rs. 32.6 million (March 31, 2009...

  • Page 123
    ...year ended March 31, 2010, the amount paid to vendors registered under the MSMED Act, 2006 after the due date was Rs. 65.2 million (March 31, 2009: Nil). An amount of Rs. 1.7 million (March 31, 2009: Nil) has been charged to profit & loss account towards accrual of interest on these delayed payments...

  • Page 124
    ... (March 31, 2009: Rs. 1,893.7 million) is receivable in future. 40. Transfer of merchant acquiring operations During the year ended March 31, 2010, the Bank and First Data, a global company engaged in electronic commerce and payment services, formed a merchant acquiring alliance and a new entity, 81...

  • Page 125
    .... Excludes retail loans towards agriculture and allied activities that qualify for priority sector lending. Excludes commercial business loans, developer financing and dealer funding. (III) Movement of NPAs Rupees in million Particulars Gross NPAs1 as on April 1, 2009 (Opening Balance) ...Additions...

  • Page 126
    ... 2. Represents the total assets and total revenue of foreign operations as reported in schedule 19 of the financial statements of the Bank. As per RBI guidelines. (V) Off-balance sheet special purpose vehicles (SPVs) sponsored (which are required to be consolidated as per accounting norms) (a) The...

  • Page 127
    ...to the current year presentation. Signatures to Schedules 1 to 19 For and on behalf of the Board of Directors K. V. KAMATH Chairman SANDEEP BAKHSHI Deputy Managing Director K. RAMKUMAR Executive Director Place : Mumbai Date : April 24, 2010 SANDEEP BATRA Group Compliance Officer & Company Secretary...

  • Page 128
    ... Indian Rupees at the rate of 1 RUB = Rs.1.56307. ICICI Prudential Pension Funds Management Company Limited, a wholly owned subsidiary of ICICI Prudential Life Insurance Company Limited, was incorporated on April 22, 2009. ICICI Wealth Management Inc., a wholly owned subsidiary of ICICI Bank Canada...

  • Page 129
    Consolidated financial statements of ICICI Bank Limited and its subsidiaries

  • Page 130
    ... attached consolidated Balance Sheet of ICICI Bank Limited ('the Bank') and its subsidiaries, associates and joint venture (collectively known as 'the Group') as at 31 March 2010 and also the consolidated Profit and Loss Account and the consolidated Cash Flow Statement of the Group for the year then...

  • Page 131
    ... at 31 March 2010; in the case of the consolidated Profit and Loss Account, of the profit of the Group for the year ended on that date; and in the case of the consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on that date. For B S R & Co. Chartered Accountants Firm...

  • Page 132
    ...19 The schedules referred to above form an integral part of the Balance Sheet. As per our Report of even date. For B S R & Co. Chartered Accountants K. V. KAMATH Chairman For and on behalf of the Board of Directors SANDEEP BAKHSHI Deputy Managing Director CHANDA D. KOCHHAR Managing Director & CEO...

  • Page 133
    ... 41,266,338 The schedules referred to above form an integral part of the Profit and Loss Account. As per our Report of even date. For and on behalf of the Board of Directors For B S R & Co. Chartered Accountants K. V. KAMATH Chairman CHANDA D. KOCHHAR Managing Director & CEO SANDEEP BAKHSHI Deputy...

  • Page 134
    ... above form an integral part of the Balance Sheet. As per our Report of even date. For B S R & Co. Chartered Accountants K. V. KAMATH Chairman For and on behalf of the Board of Directors CHANDA D. KOCHHAR Managing Director & CEO K. RAMKUMAR Executive Director SANDEEP BAKHSHI Deputy Managing Director...

  • Page 135
    ... of Rs. 10 each fully paid up (March 31, 2009: 563,147 equity shares) issued pursuant to exercise of employee stock options 11,132,506 15,947 11,148,453 Less : Calls unpaid ...Add : 111,603 equity shares forfeited (March 31, 2009: 111,603 equity shares) ...TOTAL CAPITAL ...331 770 11,148,892 11...

  • Page 136
    .../(loss), net of tax, of Rs. (4,313.8) million [March 31, 2009: Rs. (12,358.2) million] pertaining to the investments in the 'available for sale' category of ICICI Bank UK PLC. Includes restricted reserve of Rs. 11,333.6 million (March 31, 2009: Rs. 5,582.9 million) relating to the life insurance...

  • Page 137
    ... in Tier II Capital) ...TOTAL BORROWINGS IN INDIA II. Borrowings outside India i) From multilateral/bilateral credit agencies guaranteed by the Government of India for the equivalent of Rs. 17,252.7 million (March 31, 2009: Rs. 20,523.1 million) ...ii) From international banks, institutions and...

  • Page 138
    ...,245.8 million). b) Corporate dividend tax payable of Rs. 1,757.0 million (March 31, 2009: Rs. 1,626.4 million). SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA I. II. Cash in hand (including foreign currency notes) ...Balances with Reserve Bank of India in current accounts ...36,425,017...

  • Page 139
    ... shares)1 ...iv) Debentures and bonds ...v) Assets held to cover linked liabilities of life insurance business ...vi) Others (commercial paper, mutual fund units, pass through certificates, security receipts, certificate of deposits etc.) ...TOTAL INVESTMENTS IN INDIA Investments outside India...

  • Page 140
    ... of assets by way of merger amounting to Rs. 41.5 million (March 31, 2009: Rs. 119.8 million). SCHEDULE 12 - CONTINGENT LIABILITIES I. Claims against the Bank not acknowledged as debts...II. Liability for partly paid investments ...III. Liability on account of outstanding forward exchange contracts...

  • Page 141
    schedules forming part of the Consolidated Profit and Loss Account Year ended 31.03.2010 SCHEDULE 13 - INTEREST EARNED I. Interest/discount on advances/bills ...II. Income on investments1 ...III. Interest on balances with Reserve Bank of India and other inter-bank funds...IV. Others2,3...TOTAL ...

  • Page 142
    ... ICICI Trusteeship Services Limited ICICI Investment Management Company Limited ICICI International Limited ICICI Prudential Pension Funds Management Company Limited ICICI Eco-net Internet and Technology Fund Country of incorporation United Kingdom Canada Russia India USA USA India India India India...

  • Page 143
    ... relationship management, data mining and analytics and marketing services Unregistered venture capital fund Investment in research and development of biotechnology Life insurance General insurance Asset management company for ICICI Prudential Mutual Fund Trustee company for ICICI Prudential Mutual...

  • Page 144
    ... currency assets and liabilities of domestic and integral foreign operations are translated at closing exchange rates notified by Foreign Exchange Dealers' Association of India (FEDAI) at the balance sheet date and the resulting profits/ losses are included in the profit and loss account. Both...

  • Page 145
    ...z ICICI Bank Limited z ICICI Prudential Life Insurance Company Limited z ICICI Lombard General Insurance Company Limited z ICICI Venture Funds Management Company Limited The Employee Stock Option Scheme (the Scheme) of ICICI Bank provides for grant of equity shares of the Bank to wholetime directors...

  • Page 146
    schedules forming part of the Consolidated Accounts (Contd.) Claims and benefits paid In the case of general insurance business, claims incurred comprise claims paid, estimated liability for outstanding claims made following a loss occurrence reported and estimated liability for claims incurred but ...

  • Page 147
    ... Life Insurance Company Limited are administering separate funds. Employees had the option to retain the existing balance with Life Insurance Corporation of India or seek a transfer to ICICI Prudential Life Insurance Company Limited. Pension The Bank provides for pension, a deferred retirement plan...

  • Page 148
    ...Sale', is amortised over the remaining period to maturity on constant yield basis. Quoted investments are valued based on the trades/ quotes on the recognised stock exchanges, subsidiary general ledger account transactions, price list of RBI or prices declared by Primary Dealers Association of India...

  • Page 149
    ... taking into account management's perception of the higher risk associated with the business of the company. Certain NPAs are considered as loss assets and full provision has been made against such assets. g) In the case of the Bank's housing finance subsidiary, loans and other credit facilities are...

  • Page 150
    ...-line method over a period of four years from the date they are put to use, being management's estimate of the useful life of such intangibles. Depreciation on furniture and fixtures is charged at the rate of 15% per annum. In case of the Bank's general insurance and housing finance subsidiaries...

  • Page 151
    ... Information Network & Operations Limited, I-Process Services (India) Private Limited, I-Solutions Providers (India) Private Limited, NIIT Institute of Finance Banking and Insurance Training Limited, ICICI Venture Value Fund (upto March 31, 2009), Comm Trade Services Limited, Contests2win.com India...

  • Page 152
    ...The material transactions were investment in ICICI Merchant Services Private Limited amounting to Rs. 755.8 million and in the unit capital of ICICI Venture Value Fund amounting to Nil (March 31, 2009: Rs. 11.4 million). Interest expenses During the year ended March 31, 2010, the Group paid interest...

  • Page 153
    ... to Rs. 13.0 million. The material transaction for the year ended March 31, 2009 was with Financial Information Network and Operations Limited for Rs. 12.4 million. Dividend paid During the year ended March 31, 2010, the Bank paid dividend to its key management personnel amounting to Rs. 4.5 million...

  • Page 154
    schedules forming part of the Consolidated Accounts (Contd.) The following table sets forth, for the years indicated, the balance payable to/receivable from relatives of key management personnel. Rupees in million Items Deposits with the Group ...Advances ...Investments...At March 31, 2010 16.9 8.1 ...

  • Page 155
    ... tax on the scheme in the hands of the employees as perquisites which is computed on the difference between the fair market value on date of exercise and the exercise price with effect from April 1, 2009. ICICI Prudential Life Insurance Company Limited has formulated various ESOS schemes, namely...

  • Page 156
    ...out of options (Number of shares) 14,827,086 Weighted average exercise price (Rupees) 210.73 Weighted average remaining contractual life (Number of years) 7 ICICI Lombard General Insurance Company Limited has granted stock options to employees. If the entity had used the fair value of options based...

  • Page 157
    ...than five years ...Total ...5.2 Assets under finance lease The following table sets forth, for the periods indicated, the details of finance leases. Rupees in million Particulars Future minimum lease receipts Present value of lease receipts ...Unmatured finance charges...Total ...Maturity profile of...

  • Page 158
    schedules forming part of the Consolidated Accounts (Contd.) 7. Staff retirement benefits Pension The following table sets forth, for the year indicated, reconciliation of opening and closing balance of the present value of the defined benefit obligation for pension benefits of the Group. Rupees in ...

  • Page 159
    ... fluctuation loss/(gain) ...Transitional obligation/(asset) ...Effect of the limit in para 59(b) of AS 15 on 'employee benefits'...Net cost ...Investment details of plan assets Majority of the plan assets are invested in Government securities and corporate bonds. Assumptions Interest rate ...Salary...

  • Page 160
    ... 31, 2010 At March 31, 2009 9. At March 31, 2010 deferred tax assets have been created on carry forward unabsorbed losses by ICICI Prudential Life Insurance Company amounting to Rs. 2,041.5 million (March 31, 2009: Rs. 3,180.8 million) and by ICICI Lombard General Insurance Company amounting to...

  • Page 161
    ... the Bank's banking subsidiaries i.e. ICICI Bank UK PLC, ICICI Bank Canada and its subsidiary, namely, ICICI Wealth Management Inc. (up to December 31, 2009) and ICICI Bank Eurasia LLC. Life insurance represents results of ICICI Prudential Life Insurance Company Limited. General insurance represents...

  • Page 162
    ... forming part of the Consolidated Accounts (Contd.) 1. 2. 3. Includes share of net profit of minority shareholders. Includes assets which cannot be specifically allocated to any of the segments, tax paid in advance/tax deducted at source (net), deferred tax asset (net). Includes share capital...

  • Page 163
    ... for the year ended March 31, 2009. Rupees in million Retail banking Treasury Others 32,160.0 5,893.5 (3,500.0) (406,715.4) 641,530.8 49,683.5 - Total 297,421.3 13,069.4 6,079.1 (8,595.6) 2.7 2,020.8 45,280.9 165,074.3 26,624.0 3,456.5 Life insurance General insurance Venture fund management 230,152...

  • Page 164
    ...the due date was Rs. 65.2 million (March 31, 2009: Nil). An amount of Rs. 1.7 million (March 31, 2009: Nil) has been charged to profit & loss account towards accrual of interest on these delayed payments. 13. Farm loan waiver The Ministry of Finance, Government of India had issued guidelines for the...

  • Page 165
    ... Nil shares (March 31, 2009: 442,950 shares) of ICICI Lombard General Insurance Company pursuant to this scheme. 18. Transfer of Merchant acquiring operations During the year ended March 31, 2010, the Bank and First Data, a global company engaged in electronic commerce and payment services, formed...

  • Page 166
    ... re-grouped to conform to the current year presentation. SIGNATURES TO SCHEDULES 1 TO 19 For and on behalf of the Board of Directors K. V. KAMATH Chairman SANDEEP BAKHSHI Deputy Managing Director SANDEEP BATRA Group Compliance Officer & Company Secretary Place : Mumbai Date : April 24, 2010 RAKESH...

  • Page 167
    ... dividend and dividend paid on preference shares. 6. The financial information of ICICI Bank UK PLC and ICICI International Limited have been translated into Indian Rupees at the closing rate on March 31, 2010 of 1 USD = Rs. 44.9000. 7. The financial information of ICICI Bank Canada and ICICI Wealth...

  • Page 168
    ... Unregistered venture capital fund - fully consolidated 10 ICICI Trusteeship Services Limited 11 ICICI Investment Management Company Limited 12 ICICI International Limited 13 ICICI Prudential Pension Funds Management Company Limited 14 ICICI Eco-net Internet and Technology Fund1 15 ICICI Equity...

  • Page 169
    ... Trust Limited 27 TCW/ICICI Investment Partners LLC 28 Rainbow Fund 29 Financial Information Network and Operations Limited 30 I-Process Services (India) Private Limited 31 I-Solutions Providers (India) Private Limited 32 NIIT Institute of Finance, Banking and Insurance Training Limited 33...

  • Page 170
    ... for capital adequacy under Basel II is detailed in the following table. Rupees in billion Name of the entity ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited Country of incorporation India India Ownership interest 73.89% 73.72% Book value of investment...

  • Page 171
    ... Paid-up share capital1 Reserves2 Innovative Tier-1 capital instruments Minority interest Gross Tier-1 capital Deductions: Investments in instruments eligible for regulatory capital of financial subsidiaries/associates Securitisation exposures including credit enhancements Deferred tax assets...

  • Page 172
    ...The total capital adequacy ratio of the ICICI Group (consolidated) at March 31, 2010 as per the RBI guidelines on Basel II is 19.15% with a Tier-1 capital adequacy ratio of 12.92%. Under Pillar 1 of the RBI guidelines on Basel II, the Bank follows the standardised approach for credit and market risk...

  • Page 173
    ...In line with the RBI requirements for consolidated prudential report, the capital adequacy position of the ICICI Group (consolidated) is reported to the Board on a half-yearly basis. Further, the ICAAP which is an annual process also serves as a mechanism for the Board to assess and monitor the Bank...

  • Page 174
    ... Liability Management Committee (ALCO) is responsible for managing the balance sheet and reviewing the Bank's asset-liability position. 2. Policies approved from time to time by the Board of Directors/Committees of the Board form the governing framework for each type of risk. The business activities...

  • Page 175
    ... governed by Credit and Recovery Policy (Credit Policy). Credit Policy outlines the type of products that can be offered, customer categories, target customer profile, credit approval process and limits. The Credit Policy is approved by the Board of Directors. The delegation structure for approval...

  • Page 176
    ... the Bank's credit officers evaluate credit proposals on the basis of the operating notes approved by the Committee of Executive Directors and the risk assessment criteria defined by the Retail Credit Risk Management Group. Credit approval authorisation structure The Board of Directors has delegated...

  • Page 177
    ... than 90 days in respect of a term loan. Any amount due to the bank under any credit facility is 'overdue' if it is not paid on the due date fixed by the Bank; if the interest due and charged during a quarter is not serviced fully within 90 days from the end of the quarter; the account remains 'out...

  • Page 178
    ... FMCG Venture capital funds Other industries Total3 1. Includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, credit cards, dealer funding (Rs. 11.60 billion) and developer financing (Rs. 55.31 billion). 2. Includes balances with banks. 3. Includes all...

  • Page 179
    ....018/2009-10 dated July 1, 2009. 2. Consolidated figures for ICICI Bank Limited and its banking subsidiaries, ICICI Home Finance Company, ICICI Securities Primary Dealership Limited and ICICI Securities Limited and its subsidiaries. e. Amount of non-performing loans (NPLs) (March 31, 2010) Rupees...

  • Page 180
    ... ICICI Bank Limited and its banking subsidiaries and ICICI Home Finance Company. g. Movement of provisions for NPLs Rupees in billion Amount Opening balance at April 1, 2009 Provisions made during the year1 Write-offs during the year Write-back of excess provisions during the year Closing balance...

  • Page 181
    ...CRISIL Limited, Credit Analysis & Research Limited, ICRA Limited and Fitch India and the international ECAI specified by RBI are Standard & Poor's, Moody's and Fitch. Further, the RBI's Basel II framework stipulates guidelines on the scope and eligibility of application of external ratings. The Bank...

  • Page 182
    ... Savings Certificates, life insurance policies with a declared surrender value issued by an insurance company which is regulated by the insurance sector regulator, certain debt securities rated by a recognised credit rating agency, mutual fund units where daily net asset value is available in...

  • Page 183
    ... backed by financial assets originated by third parties for purposes of investment/trading/market-making with the aim of developing an active secondary market in securitised debt. z Structurer: structuring appropriately in a form and manner suitably tailored to meet investor requirements while being...

  • Page 184
    ...Summary of the Bank's accounting policies for securitisation activities Whether the transactions are treated as sales or financings The Bank transfers commercial and consumer loans through securitisation transactions. The transferred loans are de-recognised and gains/losses are accounted for only if...

  • Page 185
    ... the bank to provide financial support for securitised assets The Bank provides credit enhancements in the form of cash deposits or guarantees in its securitisation transactions. The Bank makes appropriate provisions for any delinquency losses assessed at the time of sale as well as over the life of...

  • Page 186
    ... II. Trading book i) Aggregate amount of exposures securitised for which the Bank has retained some exposures subject to market risk (March 31, 2010) Rupees in billion Exposure type Vehicle/equipment loans Home and home equity loans Personal loans Corporate loans Mixed asset pool Total Total1 9.56...

  • Page 187
    ... are at least partly based on unfunded support provided by the Bank have been treated as unrated and deducted from the capital funds. 9. MARKET RISK IN TRADING BOOK a. Market risk management policy Risk management policies Market risk is the possibility of loss arising from changes in the value of...

  • Page 188
    ... and proper reporting of investments and derivative products. 4. Compliance with regulatory requirements. 5. Effective control over the operation and execution of market related transactions. Structure and organisation of the market risk management function The Market Risk Management Group (MRMG...

  • Page 189
    ... as per the plan approved by the ORMC. Risk mitigation plans are monitored to ensure timely mitigation of risks. Internal controls are tested by Internal Audit Group in the Bank. The testing results are incorporated in the operational risk assessment. The new product and process approval framework...

  • Page 190
    ...the Asset Liability Management (ALM) groups in overseas branches manage the risk at the respective branches, under direction of the Bank's GALM group. The ALM Policy of the Bank contains the prudential limits on liquidity and interest rate risk, as prescribed by the Board of Directors/Risk Committee...

  • Page 191
    ... rate sensitive assets (RSA) (including off-balance sheet positions and trading positions). The report is prepared fortnightly and the rate sensitive liabilities, assets and off-balance sheet positions, except for savings deposits, term loans and wholesale term deposits are grouped into time buckets...

  • Page 192
    ... to market. The management of price risk of the trading book is detailed in the Investment Policy. Hedging policy Depending on the underlying asset or liability and prevailing market conditions, the Bank enters into hedge transactions for identified assets or liabilities. The Bank has a policy for...

  • Page 193
    ... operations, current accounts and savings deposits payable on demand form a significant part of the Bank's funding and the Bank is working with a concerted strategy to sustain and grow this segment of deposits along with retail term deposits. These deposits are augmented by wholesale deposits...

  • Page 194
    ... in place robust governance structure, policy framework and review mechanism to ensure availability of adequate liquidity even under stressed market conditions. 13. RISK MANAGEMENT FRAMEWORK OF ICICI SECURITIES PRIMARY DEALERSHIP LIMITED The Board of Directors of the Company maintains oversight on...

  • Page 195
    Global Reach ICICI Bank's global network spans 19 countries. Russia Canada Belgium Germany USA UK China Bahrain UAE Bangladesh Hong Kong Abu India Dhabi Thailand Sri Lanka Malaysia Singapore Indonesia South Africa Graphical Representation. Not to scale.

  • Page 196