ICICI Bank 2012 Annual Report Download - page 47

Annual Report 2011-2012 45
INFORMATION TECHNOLOGY
ICICI Bank has been a technology leader in Indian banking for over a decade, taking pioneering steps
to enhance convenience for our customers. We have brought in high levels of functionalities to all our
channels such as internet banking, ATMs, mobile banking and phone banking and at the same time
continued to improve and strengthen internal technology infrastructure, processes and capabilities.
Our information technology strategy has remained focused around increasing customer convenience,
reducing customer complaints and reducing turnaround time.
Against this backdrop, we have, during the course of the year, enhanced offerings for all our retail
customers. These included a range of additional functionalities across our technology channels, including
ATMs, mobile banking and internet banking. For our corporate customers, we reduced the need for
them to visit branches by introducing the online trade platform. The platform will enable customers
to conduct their trade transactions over the internet, track the status of their service requests online
and help us provide better turnaround time. In the area of financial inclusion, we participated in the
online transaction authentication pilot conducted by UIDAI in Hazaribagh, Jharkhand. We successfully
demonstrated transactions like balance enquiries, cash withdrawal, cash deposit and funds transfer as
part of this exercise.
Internally, we also continued with our focus to improve our processes and capabilities. We installed
note-sorting machines in identified branches. These machines can detect fake currency notes and
hence generate clean cash at the branch level itself. We also upgraded our systems to handle high
NEFT transaction volumes.
We continue to invest in innovation and partnering with business teams on ways to leverage technology
to enhance customer convenience, accelerate financial inclusion and deliver a superior experience to
our customers.
KEY SUBSIDIARIES
ICICI Prudential Life Insurance Company (ICICI Life)
Fiscal 2012 was the first full year of operations after the regulatory changes in respect of unit linked
insurance products came into effect from September 2010. ICICI Life successfully maintained its
leadership amongst private players in new business premium on retail weighted basis with a market
share of 5.9%. ICICI Life’s total premium for fiscal 2012 was ` 140.22 billion and new business annualised
premium equivalent premium was ` 31.18 billion. ICICI Life’s unaudited new business profit in fiscal
2012 was ` 5.00 billion. The profit after tax for ICICI Life was ` 13.84 billion in fiscal 2012 compared to
` 8.08 billion in fiscal 2011. The total sum assured by ICICI Life increased by 20% from ` 1,737.64 billion
at March 31, 2011 to ` 2,082.99 billion at March 31, 2012.
ICICI Lombard General Insurance Company (ICICI General)
ICICI General maintained its leadership in the private sector with an overall market share of 9.4% in
fiscal 2012. ICICI General’s gross written premium grew by 22% from ` 44.08 billion in fiscal 2011 to
` 53.58 billion during fiscal 2012.
Insurance Regulatory and Development Authority, vide its order dated March 22, 2012, has specified
the ultimate loss ratios for general insurance companies in respect of the third party motor pool, a
multilateral reinsurance arrangement covering third party risk of commercial vehicles. The loss ratios
range from 159% to 213% between fiscal 2008 to fiscal 2011 and 145% for fiscal 2012 (after considering
price increase of 68.5% effective April 25, 2011). This had an impact on the entire general insurance
industry. The additional impact of the above on ICICI General was ` 6.85 billion. As a result of the
negative impact, ICICI General recorded a loss of ` 4.16 billion in fiscal 2012 compared to a loss of
` 0.80 billion in fiscal 2011.