ICICI Bank 2013 Annual Report Download - page 62

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other fixed income positions, profit on security receipts and other gains, offset, in part, by mark-to-
market losses on equity and preference share portfolio. Loss from treasury-related activities in fiscal
2012 primarily included realised/mark-to-market provision on security receipts, offset, in part, by reversal
of mark-to-market loss/realised gain on investments in government of India securities and other fixed
income positions and gain on equity/preference investments.
During fiscal 2013 the mark-to-market gain on the credit derivatives portfolio was ` 0.06 billion compared
to ` 0.56 billion in fiscal 2012.
At March 31, 2013, we had an outstanding net investment of ` 11.47 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 2013, the impact of these security receipts on the income from
treasury-related activities was a gain of ` 0.45 billion compared to a loss of ` 4.08 billion in fiscal 2012.
Dividend from subsidiaries
Dividend from subsidiaries increased by 23.9% from ` 7.36 billion in fiscal 2012 to ` 9.12 billion in fiscal
2013. In fiscal 2013, dividend from subsidiaries included dividend of ` 3.27 billion received from ICICI
Prudential Life Insurance Company Limited, ` 1.67 billion received from ICICI Bank Canada and ` 1.31
billion received 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 2012 Fiscal 2013 % change
Payments to and provisions for employees ` 35.15 ` 38.93 10.8%
Depreciation on own property (including non
banking assets) 4.82 4.57 (5.2)
Other administrative expenses 38.11 46.30 21.5
Total non-interest expense (excluding lease depreciation) 78.08 89.80 15.0
Depreciation (net of lease equalisation) on leased assets 0.42 0.33 (21.4)
Total non-interest expense ` 78.50 ` 90.13 14.8%
Non-interest expenses primarily include employee expenses, depreciation on assets and other
administrative expenses. In fiscal 2013, non-interest expenses increased by 14.8% from ` 78.50 billion in
fiscal 2012 to ` 90.13 billion in fiscal 2013 primarily due to an increase in employee expenses and other
administrative expenses.
Payments to and provisions for employees
Employee expenses increased by 10.8% from ` 35.15 billion in fiscal 2012 to ` 38.93 billion in fiscal 2013.
Employee expenses increased due to annual increments and increase in the number of employees.
The number of employees increased from 58,276 at March 31, 2012 to 62,065 at March 31, 2013. The
employee base includes sales executives, employees on fixed term contracts and interns.
Depreciation
Depreciation on owned property decreased by 5.2% from ` 4.82 billion in fiscal 2012 to ` 4.57 billion in
fiscal 2013. Depreciation on leased assets decreased from ` 0.42 billion in fiscal 2012 to ` 0.33 billion in
fiscal 2013.
Management’s Discussion & Analysis