ICICI Bank 2012 Annual Report Download - page 58

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Income from foreign exchange transactions with clients and from margins on derivatives transactions with
clients increased by 42.8% from ` 7.95 billion in fiscal 2011 to ` 11.35 billion in fiscal 2012.
Profit/(loss) on treasury-related activities (net)
Income from treasury-related activities includes income from sale of investments and revaluation of
investments on account of changes in unrealised profit/(loss) in the fixed income, equity and preference
share portfolio, units of venture funds and security receipts.
Loss on treasury-related activities decreased from ` 2.15 billion in fiscal 2011 to ` 0.13 billion in fiscal 2012.
Loss from treasury-related activities for fiscal 2012 primarily includes realised/MTM provision on security
receipts, offset, in part, by reversal of MTM loss/realised gain on investments in government of India
securities and other fixed income positions and gain on equity/preference investments. Treasury income
for fiscal 2011 primarily included loss on investments in government of India securities and realised/MTM
provision on security receipts, offset, in part, by gains on equity investments.
During fiscal 2012, there was a gain on the credit derivatives portfolio amounting to ` 0.56 billion compared
to a gain of ` 0.15 billion in fiscal 2011.
At March 31, 2012, we had an outstanding net investment of ` 18.32 billion in security receipts issued by
asset reconstruction companies in relation to sale of non-performing loans. Security receipts issued by asset
reconstruction companies are valued as per net asset value obtained from the asset reconstruction company
from time to time. During fiscal 2012, the impact of these security receipts on the income from treasury-
related activities was a loss of ` 4.08 billion compared to a loss of ` 2.31 billion in fiscal 2011.
Lease and other income
Lease and other income primarily includes dividend from subsidiaries, lease rentals and profit on sale of fixed
assets. Lease and other income increased from ` 4.44 billion in fiscal 2011 to ` 8.08 billion in fiscal 2012
primarily on account of increase in dividend income from subsidiaries. During fiscal 2012, dividend income
included dividend of ` 2.32 billion received from ICICI Prudential Life Insurance Company and ` 1.22 billion
from ICICI Bank UK.
Non-interest expense
The following table sets forth, for the periods indicated, the principal components of non-interest expense.
` in billion, except percentages
Fiscal 2011 Fiscal 2012 % change
Payments to and provisions for employees ` 28.17 ` 35.15 24.8%
Depreciation on own property (including non
banking assets) 4.84 4.82 (0.4)
Other administrative expenses 30.80 36.51 18.5
Total non-interest expense (excluding lease
depreciation and direct marketing agency expenses) 63.81 76.48 19.9
Depreciation (net of lease equalisation)
on leased assets 0.79 0.42 (46.8)
Direct marketing agency expenses 1.57 1.60 1.9
Total non-interest expense ` 66.17 ` 78.50 18.6%
Non-interest expenses primarily include employee expenses, depreciation on assets, direct marketing agency
expenses and other administrative expenses. In fiscal 2012, non-interest expenses increased by 18.6% from
` 66.17 billion in fiscal 2011 to ` 78.50 billion in fiscal 2012 primarily due to an increase in employee expenses
and other administrative expenses.
Management’s Discussion & Analysis