ICICI Bank 2011 Annual Report Download - page 7

the previous year. The return on assets, or RoA,
improved substantially to 1.34% in fiscal 2011
from 1.13% in the previous year.
•The strong results achieved by the Bank
are reflected in the higher level of proposed
dividend of ` 14 per equity share compared to
` 12 per equity share in the previous year.
•The above growth and profitability was
achieved on the back of sustaining and
enhancing the improvements achieved in
key operating metrics. The proportion of
current and savings account deposits in
total deposits, which had already increased
from 28.7% at March 31, 2009 to 41.7% at
March 31, 2010, was further improved to 45.1% at
March 31, 2011. The net non-performing asset
ratio was reduced substantially from 1.87% at
March 31, 2010 to 0.94% at March 31, 2011.
The cost-to-asset ratio was contained at 1.7%
despite the expansion in the branch network
and increase in business volumes. The Bank’s
capital adequacy position continued to be very
strong, with total capital adequacy of 19.5% and
Tier-1 capital adequacy of 13.2%.
While executing our organic growth strategy, we
continued to focus on opportunities to further
strengthen our franchise and our platform for
capitalising on the growth opportunities in the
Indian economy. To this end, we undertook the
major strategic initiative of the merger of Bank of
Rajasthan with ICICI Bank during fiscal 2011. With
this merger, we created a combined network of
over 2,500 branches, substantially expanding our
presence not only in Rajasthan but also in other
major banking centres in the country. Following
receipt of regulatory approvals for the merger in
August 2010, we moved quickly to integrate the
Bank of Rajasthan franchise with ICICI Bank. We
have been able to achieve integration of human
resources and various aspects of operations
seamlessly in a short span of time. We believe
this provides us a powerful platform for pursuing
our objective of sustained profitable growth in the
coming years.
The ICICI Group has a unique diversified financial
services franchise in India, with leadership positions
across many segments of financial services. Our
non-banking businesses – insurance, securities,
asset management and private equity - continue
to build on their strong positions in their respective
businesses and realign their strategies to the
emerging market environment wherever required.
In fiscal 2011, we achieved a 30.5% increase in the
consolidated profit after tax, despite the impact
of regulatory changes and volatility in financial
markets on several businesses.
As the second-largest bank in India, we are also
conscious of our larger role in the growth and
development of the Indian economy. Our vision
encompasses not only participating in all aspects
of the Indian economy and its international
linkages, but also catalysing India’s growth.
We are executing a focused financial inclusion
plan-leveraging information & communications
technology and the enabling regulatory framework
to provide basic banking services to the unbanked.
Through the ICICI Foundation for Inclusive Growth,
we are seeking to improve the quality of school
education and primary healthcare in a number of
states, thereby playing our role in the strengthening
of the soft infrastructure that is critical to long-
term sustainable growth of our country. Through
our specialised technology finance practice, we
continue to support research & development in the
area of clean technology and energy efficiency to
mitigate climate change.
Looking ahead, we see strong fundamentals
driving sustained high growth in India for several
years to come. There would continue to be periodic
challenges on account of global developments,
volatility in capital flows, inflation and other
factors. However, the underlying momentum
of our demographic dividend and investment
potential will support robust growth over the long-
term. The ICICI Group therefore has a range of
growth opportunities across its businesses and
a strong platform to leverage these opportunities
and create value for its stakeholders. We are
committed to playing a proactive role in India’s
growth and also helping to achieve the national
goal of social & economic inclusion of the less
advantaged sections of our society.
We look forward to your continued support and
goodwill as we move forward.
With best wishes,
Chanda Kochhar
Annual Report 2010-2011 5