ICICI Bank 2013 Annual Report Download - page 45

Annual Report 2012-2013 43
The Government has proposed modifications to the existing standard bid documents to make fuel a pass
through for tariffs which would encourage new investments in the power sector. There are also initiatives
towards granting approvals for coal mines. Further, the Government is also actively working on improving
the fuel availability for various power projects. The proposal to take up coal mining in partnership with
the private sector will improve availability of coal. These measures are expected to ensure the viability
of investments in power generation assets. With greater private sector participation, projects in regional
and inter-regional transmission corridors are expected which would strengthen the national grid. The
renewable energy segment has gained momentum with more states formulating policies to encourage
new investments in this segment.
In roads and ports sectors, we expect to see an increase in activity during fiscal 2014 with new projects
likely to be awarded. The National Highway Authority of India (NHAI) is planning to award up to 4,000 km of
roads through engineering, procurement & construction (EPC) contracts during the year. The Government
has also decided to constitute a regulatory authority for the road sector to expedite development and
address challenges faced by the sector. In the port sector, about 30 port projects are expected to be
awarded. The railway sector is also expected to witness increased investment in logistics development,
track infrastructure (including dedicated freight corridors) and rolling stock, enabling higher movement
of rakes.
In the oil and gas sector, most of the activity is expected to be linked to demand for natural gas. The
demand for gas from priority sectors such as power and fertiliser is likely to continue, maintaining
pressure on domestic supplies of gas. Significant additions to LNG import capacity have been announced
with commissioning expected over the next four to five years. With the announcement of a new fertiliser
policy, the urea sector is also expected to see capacity additions.
Our long experience in project finance, deep sectoral expertise and innovative structuring capabilities
have placed us in a position to capitalise on these opportunities and cater to the long-term financing
requirements of Indian corporates. Infrastructure development is a critical area to improve the economic
potential of the country, and we remain committed to partnering with companies in promoting viable
projects.
International Banking
Our international banking strategy is focused on providing end-to-end solutions for the international
banking requirements of our Indian corporate clients, leveraging economic corridors between India and
the rest of the world and establishing ICICI Bank as the preferred bank for non-resident Indians in key
global markets. Further, during fiscal 2013, despite the volatile economic environment, India remained an
attractive market for most major global corporations, and ICICI Bank’s International Banking Group seeks
to partner them as they expand in India. We also seek to build stable international funding sources and
strong syndication capabilities to support our corporate and investment banking business, and to expand
private banking operations for India-centric asset classes.
Our international footprint consists of subsidiaries in the United Kingdom, Russia and Canada, branches
in the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre
and Qatar Financial Centre and representative offices in the United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. The Bank’s wholly owned subsidiary ICICI Bank UK PLC
has eleven branches in the United Kingdom and a branch each in Belgium and Germany. ICICI Bank
Canada has nine branches. ICICI Bank Eurasia, our Russian subsidiary, is headquartered in Moscow with
a branch in St. Petersburg. We opened our second retail branch in Hong Kong in fiscal 2013.
During fiscal 2013, the global economic environment was characterised by slow and prolonged recovery
in advanced economies and growth slowdown in emerging economies. In this environment, we continued
to focus on managing the risks to growth in our international operations. We also focused on diversifying
the mix of our funding profile in our international operations. We continued to focus on expanding our
trade finance business and our relationships with global corporates doing business in India.