ICICI Bank 2012 Annual Report Download - page 6

at March 31, 2012. During fiscal 2012 also, we
were able to maintain this momentum despite
the tight systemic liquidity, high interest rates
and the changing competitive landscape. In
addition, we have significantly enhanced our
retail term deposit franchise, substantially
increasing the share of retail deposits in our
total deposit base.
• Our net interest margin has improved from
2.43% in fiscal 2009 to 2.73% in fiscal 2012,
through focused efforts on both the asset
and liability sides of the balance sheet in our
domestic and overseas businesses.
• We have reduced our net non-performing
asset ratio from 2.19% at the peak to 0.62%
at March 31, 2012. The improvement in asset
quality is also evident in the reduction in the
provision charge in our profit & loss account,
which has declined from a peak of 2.29%
of average loans in fiscal 2010 to 0.68%
of average loans in fiscal 2012. Provisions
declined by 31% in fiscal 2012 on a year-on-
year basis.
• With the above improvements, we have grown
our business. After a year of consolidation in
fiscal 2010, we grew our balance sheet at a
robust pace over the last two years. In fiscal
2012, our loans and advances grew by 17%.
• Our return on assets has improved from
0.98% in fiscal 2009 to 1.50% in fiscal 2012,
demonstrating a fundamental positive shift in
our profitability.
• ICICI Bank’s return on equity improved from
7.7% in fiscal 2009 to 11.1% in fiscal 2012.
On a consolidated basis, the return on equity
improved at an even faster pace, from 7.8%
to 13.0% over the same period, reflecting the
robust performance of not only ICICI Bank
but also our subsidiaries operating in various
segments of the financial services sector.
Amidst a rapidly evolving global and domestic
economic environment, we at ICICI Bank have
continued to focus on the strategic path we
outlined three years ago. We had articulated a
clear vision of where we wanted to be, and a
clear path towards getting there. Our goal was
to rebalance our funding mix & grow our retail
deposit base; substantially improve asset quality;
and enhance our profitability. Through this, we
sought to position ourselves to participate in the
growth opportunities in the Indian economy and
its global linkages. I am happy to say that we have
executed this strategy with focus and diligence.
Let me take this opportunity to share just a few
highlights of the progress we have made over
this three year journey.
• We have improved the share of low cost
current and savings accounts in our deposit
base from 28.7% at March 31, 2009 to 43.5%
Letter from the Managing Director & CEO
CHANDA KOCHHAR Managing Director & CEO
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