ICICI Bank 2012 Annual Report Download - page 171

F93
BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)
ICICI Bank is subject to the Basel II framework with effect from March 31, 2008 as stipulated by the Reserve Bank of India (RBI).
The Basel II framework consists of three-mutually reinforcing pillars:
(i) Pillar 1: Minimum capital requirements for credit risk, market risk and operational risk
(ii) Pillar 2: Supervisory review of capital adequacy
(iii) Pillar 3: Market discipline
Market discipline (Pillar 3) comprises set of disclosures on the capital adequacy and risk management framework of the Bank.
These disclosures have been set out in the following sections.
1. SCOPE OF APPLICATION
Pillar 3 disclosures apply to ICICI Bank Limited and its consolidated entities, wherein ICICI Bank Limited is the controlling
entity in the group.
Basis of consolidation for capital adequacy
Consolidation for capital adequacy is based on consolidated financial statements of ICICI Bank and its subsidiaries in line
with the guidelines for consolidated accounting and other quantitative methods issued by RBI.
The entities considered for consolidation for capital adequacy include subsidiaries, associates and joint ventures of the
Bank, which carry on activities of banking or financial nature as stated in the scope for preparing consolidated prudential
reports as prescribed by RBI. Entities engaged in insurance business and businesses not pertaining to financial services
are excluded from consolidation for capital adequacy. Investment above 30% in paid-up equity capital of financial entities
which are not consolidated for capital adequacy (including insurance entities) and investments in other instruments
eligible for regulatory capital status in those entities are deducted to the extent of 50% from Tier-1 and 50% from Tier-2
capital.
The following table lists ICICI Bank’s financial and non-financial subsidiaries, associates, joint ventures and other entities
consolidated for preparation of consolidated financial statements and their treatment in consolidated capital adequacy
computations.
Sr.
No.
Name of the entity Nature of business & consolidation status
1 ICICI Bank UK PLC Banking – fully consolidated
2 ICICI Bank Canada Banking – fully consolidated
3 ICICI Bank Eurasia Limited Liability Company Banking – fully consolidated
4 ICICI Securities Limited Securities broking and merchant banking – fully
consolidated
5 ICICI Securities Inc. Securities broking – fully consolidated
6 ICICI Securities Holdings Inc. Holding company of ICICI Securities Inc. – fully
consolidated
7 ICICI Securities Primary Dealership Limited Securities investment, trading and underwriting – fully
consolidated
8 ICICI Venture Funds Management Company Limited Private equity/venture capital fund management – fully
consolidated
9 ICICI Home Finance Company Limited Housing finance – fully consolidated
10 ICICI Trusteeship Services Limited Trusteeship services – fully consolidated
11 ICICI Investment Management Company Limited Asset management – fully consolidated
12 ICICI International Limited Asset management – fully consolidated
13 ICICI Prudential Pension Funds Management Company
Limited
Pension fund management – fully consolidated
14 ICICI Eco-net Internet and Technology Fund1Venture capital fund – fully consolidated
15 ICICI Equity Fund1Unregistered venture capital fund – fully consolidated
at March 31, 2012