ICICI Bank 2012 Annual Report Download - page 67

Annual Report 2011-2012 65
The following table sets forth, at the dates indicated, the composition of our gross (net of write-offs)
outstanding retail finance portfolio.
` in billion, except percentages
March 31, 2011 March 31, 2012
Total retail
advances
% of
total retail
advances
Total retail
advances
% of
total retail
advances
Home loans1` 541.26 60.8% ` 579.83 60.8%
Automobile loans 85.81 9.6 94.71 9.9
Commercial business 152.86 17.2 180.70 19.0
Personal loans 40.31 4.5 29.52 3.1
Credit cards 48.51 5.5 45.96 4.8
Loans against securities and others221.99 2.4 23.21 2.4
Total retail finance portfolio ` 890.74 100.0% ` 953.93 100.0%
1. Includes developer financing
2. Includes dealer financing portfolio.
Directed lending
RBI requires banks to lend to certain sectors of the economy. Such directed lending comprises priority sector
lending and export credit.
RBI guideline on priority sector lending requires the banks to lend 40.0% of their adjusted net bank credit
(ANBC), or credit equivalent amount of off balance sheet exposure (CEOBE), whichever is higher, to certain
activities carried out by the specified borrowers. The definition of ANBC includes certain investments and
is computed with reference to the respective amounts at March 31 of the previous year. Priority sector
includes lending to agricultural sector, food and agri-based industries, small enterprises/businesses, housing
finance up to certain limits and lending to borrowers belonging to weaker sections. Out of the 40.0%, banks
are required to lend a minimum of 18.0% of their ANBC to the agriculture sector and the balance to certain
specified sectors. The banks are also required to lend 10.0% of their ANBC, or COEBE, whichever is higher,
to the weaker sections.
While granting its approval for the amalgamation of ICICI Limited and ICICI Bank Limited, RBI stipulated
specific requirements for the Bank since the loans of erstwhile ICICI Limited (ICICI) transferred to us were
not subject to the priority sector lending requirement. With effect from fiscal 2013, the targets for ICICI Bank
would be at par with other banks i.e. 40.0%, 18.0% and 10.0% respectively of ANBC or CEOBE, whichever
is higher.
We are required to comply with the priority sector lending requirements at the last ‘reporting Friday’
of each fiscal year. The shortfall in the amount required to be lent to the priority sectors and weaker
sections may be required to be deposited with government sponsored Indian development banks
like the National Bank for Agriculture and Rural Development, the Small Industries Development Bank
of India and the National Housing Bank. These deposits have a maturity of up to seven years and carry
interest rates lower than market rates. At March 31, 2012, our total investment in such bonds was
` 181.03 billion.
At March 23, 2012, the last reporting Friday for fiscal 2012, our priority sector lending was ` 614.05 billion,
constituting about 95.0% of our requirements. At that date, the qualifying agriculture loans were ` 175.57
billion constituting about 75.0% of our requirements. Our advances to weaker sections were ` 42.18 billion
constituting about 39.0% of our requirements.