ICICI Bank 2010 Annual Report Download - page 68

Management’s Discussion and Analysis
ICICI Prudential Life Insurance Company Limited recorded a profit after tax of Rs. 2.58 billion in fiscal 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 from Rs. 0.24 billion in fiscal 2009
to Rs. 1.44 billion in fiscal 2010 primarily due to increase in operational efficiency and higher gains on sale of
investments following improved market conditions in fiscal 2010.
Profit after tax of ICICI Securities Limited increased from Rs. 0.04 billion in fiscal 2009 to Rs. 1.23 billion in fiscal
2010 on account of improved capital market conditions.
Profit after tax of ICICI Prudential Asset Management Company increased from Rs. 0.01 billion in fiscal 2009 to
Rs. 1.28 billion in fiscal 2010 primarily due to the increase in management fees on account of higher funds under
management and due to scheme support expenses of Rs. 0.92 billion incurred in fiscal 2009.
Consolidated assets of the Bank and its subsidiaries and other consolidating entities increased from Rs. 4,826.91
billion at year-end fiscal 2009 to Rs. 4,893.47 billion at year-end fiscal 2010. Consolidated advances of the Bank
and its subsidiaries decreased from Rs. 2,661.30 billion at year-end fiscal 2009 to Rs. 2,257.78 billion at year-end
fiscal 2010.
The following table sets forth, for the periods indicated, the profit/(loss) of our principal subsidiaries.
Rs. in billion
Company Fiscal 2009 Fiscal 2010
ICICI Bank UK PLC 0.31 1.76
ICICI Bank Canada 1.39 1.54
ICICI Bank Eurasia Limited Liability Company (0.07) 0.53
ICICI Prudential Life Insurance Company Limited (7.80) 2.58
ICICI Lombard General Insurance Company Limited 0.24 1.44
ICICI Securities Limited 0.04 1.23
ICICI Securities Primary Dealership Limited 2.72 0.85
ICICI Home Finance Company Limited 1.43 1.61
ICICI Prudential Asset Management Company Limited 0.01 1.28
ICICI Venture Funds Management Company Limited 1.48 0.51
INTERNATIONAL FINANCIAL REPORTING STANDARDS
Convergence with International Financial Reporting Standards (IFRS), issued by the International Accounting
Standards Board (IASB) is gaining the attention of companies, regulators and investing communities across
the world. Many countries have adopted IFRS and some of them, including India, are in the process of adopting
the same.
Various Indian regulators in India have laid down a roadmap towards implementation of IFRS in India. Based on
the recommendations of a Core Group set up to facilitate IFRS convergence in India, the Ministry of Corporate
Affairs (MCA), in consultation with RBI, has announced the approach and timelines for achieving convergence by
financial institutions including banks, insurance companies and non-banking finance companies (NBFCs), which
requires a phased approach to achieve convergence for banks. As per the roadmap, all scheduled commercial
banks will convert their opening balance sheet as at April 1, 2013 in compliance with the IFRS converged Indian
Accounting Standards.
RBI in its monetary policy statement for fiscal 2011 has proposed to undertake a study of the implications of the
IFRSs convergence process and also to issue operational guidelines as appropriate and to disseminate information
through learning programmes with a view to preparing banks and other entities to adhere to the roadmap.
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