ICICI Bank 2014 Annual Report Download - page 19
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• Apartfromsanctioningcreditproposals,theCreditCommitteeoftheBoardreviewsdevelopmentsin
keyindustrialsectorsandtheBank’sexposuretothesesectorsaswellastolargeborroweraccounts
andborrowergroups.TheCreditCommitteealsoreviewsthemajorcreditportfolios,non-performing
loans,accountsunderwatch,overduesandincrementalsanctions.
• TheAuditCommitteeoftheBoardprovidesdirectiontoandmonitorsthequalityoftheinternalaudit
functionandalsomonitorscompliancewithinspectionandauditreportsofRBI,otherregulatorsand
statutoryauditors.
• TheAssetLiabilityManagementCommitteeisresponsibleformanagingliquidityandinterestraterisk
andreviewingtheasset-liabilitypositionoftheBank.
SummariesofreviewsconductedbytheseCommitteesarereportedtotheBoardonaregularbasis.
Policies approved from time to time by the Board of Directors/Committees of the Board form the
governing framework for each type of risk. The business activities are undertaken within this policy
framework. Independent groups and sub-groups have been constituted across the Bank to facilitate
independentevaluation,monitoringandreportingofvariousrisks.Thesegroupsfunctionindependently
ofthebusinessgroups/sub-groups.
TheBankhasdedicatedgroups,viz.,theRiskManagementGroup,ComplianceGroup,CorporateLegal
Group,InternalAuditGroupandtheFinancialCrimePrevention&ReputationRiskManagementGroup,
withamandatetoidentify,assessandmonitoralloftheBank’sprincipalrisksinaccordancewithwell-
definedpoliciesandprocedures.TheRiskManagementGroupisfurtherorganisedintotheCreditRisk
ManagementGroup,MarketRiskManagementGroupandOperationalRiskManagementGroup.These
groups are completely independent of all business operations and coordinate with representatives of
thebusinessunitstoimplementICICIBank’sriskmanagementpoliciesandmethodologies.Theinternal
auditandcompliancegroupsareresponsibletotheAuditCommitteeoftheBoard.
CORPORATE GOVERNANCE
The corporate governance framework at ICICI Bank is based on an effective independent Board, the
separationoftheBoard’ssupervisoryrolefromtheexecutivemanagementandtheconstitutionofBoard
Committees,whichatMarch31,2014comprisedmajorityofindependentDirectorsandwaschairedby
independentDirectors,tooverseecriticalareas.
I. Philosophy of Corporate Governance
ICICI Bank’s corporate governance philosophy encompasses regulatory and legal requirements, such
asthetermsoflistingagreementswithstockexchangeswhichaimsatahighlevelofbusinessethics,
effectivesupervisionandenhancementofvalueforallstakeholders.Thecorporategovernanceframework
adopted by the Bank already encompasses a significant portion of the recommendations contained
in the ‘Corporate Governance Voluntary Guidelines 2009’ issued by the Ministry of Corporate Affairs,
GovernmentofIndia.
Whistle Blower Policy
ICICIBankhasformulatedaWhistleBlowerPolicy.Thepolicycomprehensivelyprovidesanopportunity
foranyemployee/DirectoroftheBanktoraiseanyissueconcerningbreachesoflaw,accountingpolicies
oranyactresultinginfinancialorreputationlossandmisuseofofficeorsuspectedoractualfraud.The