ICICI Bank 2013 Annual Report Download - page 177

F99
d. Debt capital instruments eligible for inclusion in Tier-1 and Tier-2 capital
` in billion
Lower Tier-1 Upper Tier-2 Lower Tier-2
Total amount outstanding at March 31, 2013 31.42 151.57 231.24
Of which, amounts raised during the year - - 38.85
Amount eligible to be reckoned as capital funds
at March 31, 2013
31.42 151.57 192.98
e. Total eligible capital (March 31, 2013)
` in billion
Amount
Tier-1 capital 626.99
Tier-2 capital 329.52
Total eligible capital 956.51
3. CAPITAL ADEQUACY
a. Capital management
Objective
The Bank actively manages its capital to meet regulatory norms and current and future business needs
considering the risks in its businesses, expectation of rating agencies, shareholders and investors, and the
available options of raising capital.
Organisational set-up
The capital management framework of the Bank is administered by the Finance Group and the Risk
Management Group (RMG) under the supervision of the Board and the Risk Committee.
Regulatory capital
The Bank is subject to the capital adequacy norms stipulated by the RBI guidelines on Basel II. The RBI
guidelines on Basel II require the Bank to maintain a minimum ratio of total capital to risk weighted assets
of 9.0%, with a minimum Tier-1 capital adequacy ratio of 6.0%. The total capital adequacy ratio of the Bank
at a standalone level at March 31, 2013 as per the RBI guidelines on Basel II is 18.74% with a Tier-1 capital
adequacy ratio of 12.80%. The total capital adequacy ratio of the ICICI Group (consolidated) at March 31,
2013 as per the RBI guidelines on Basel II is 19.69% with a Tier-1 capital adequacy ratio of 12.91%.
Under Pillar 1 of the RBI guidelines on Basel II, the Bank follows the Standardised approach for credit and
market risk and basic indicator approach for operational risk.
Internal assessment of capital
The Bank’s capital management framework includes a comprehensive internal capital adequacy assessment
process (ICAAP) conducted annually which determines the adequate level of capitalisation for the Bank to
meet regulatory norms and current and future business needs, including under stress scenarios. The ICAAP is
formulated at both standalone bank level and the consolidated group level. The ICAAP encompasses capital
planning for a four year time horizon, identification and measurement of material risks and the relationship
between risk and capital.
The capital management framework is complemented by the risk management framework, which includes a
comprehensive assessment of material risks.
BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)
at March 31, 2013