ICICI Bank 2010 Annual Report Download - page 97

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 (CRAR) 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.
RBI has stipulated that the minimum capital maintained by banks on adoption of the Basel II framework shall be subject
to a prudential floor, which shall be higher of the minimum capital required as per Basel II or a specified percentage of the
minimum capital required as per Basel I (80% at March 31, 2010). The computation under Basel II guidelines results in a
higher minimum capital requirement as compared to Basel I and hence the capital adequacy at March 31, 2010 has been
maintained and reported by the Bank as per Basel II guidelines.
The following table sets forth, for the periods indicated, computation of capital adequacy.
Rupees in million
As per Basel I framework As per Basel Il framework
At
March 31,
2010
At
March 31,
2009
At
March 31,
2010
At
March 31,
2009
Tier I capital ....................................................................... 432,614.3 420,098.1 410,615.1 421,967.6
(Of which Lower Tier I) ...................................................... 28,210.0 30,168.6 28,210.0 30,168.6
Tier II capital ...................................................................... 181,569.1 129,715.9 160,409.9 131,585.3
(Of which Upper Tier II) ..................................................... 137,912.0 109,100.0 137,912.0 109,100.0
Total capital ....................................................................... 614,183.4 549,814.0 571,025.0 553,552.9
Total risk weighted assets ................................................ 3,208,425.4 3,453,378.9 2,941,805.8 3,564,629.9
CRAR (%) .......................................................................... 19.14% 15.92% 19.41% 15.53%
CRAR – Tier I capital (%) ................................................... 13.48% 12.16% 13.96% 11.84%
CRAR – Tier II capital (%) .................................................. 5.66% 3.76% 5.45% 3.69%
Amount raised by issue of Innovative Perpetual Debt
Instruments (IPDI) during the year .................................... ————
Amount of subordinated debt raised as
Tier II capital during the year ............................................. 62,000.0 45,210.0 62,000.0 45,210.0
2. Business/information ratios
The following table sets forth, for the periods indicated, the business/information ratios.
Year ended
March 31, 2010 Year ended March 31, 2009
i) Interest income to working funds1 ............................................................... 7.19% 8.11%
ii) Non-interest income to working funds1 ........................................................ 2.09% 1.98%
iii) Operating profit to working funds1 ............................................................... 2.72% 2.33%
iv) Return on assets2 .......................................................................................... 1.13% 0.98%
v) Profit per employee (Rs. in million) ............................................................... 1.2 1.1
vi) Business per employee (average deposits plus average advances)3
(Rs. in million) ................................................................................................ 102.9 115.4
1. For the purpose of computing the ratio, 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.
schedules
forming part of the Accounts (Contd.)